# How Middle East Conflict Is Accelerating Asia’s Energy Transition

- Link: https://www.thailand-business-news.com/economics/310420-how-middle-east-conflict-is-accelerating-asias-energy-transition
- Published: 2026-06-13T21:08:06+07:00
- Author: Fujiko Takahashi

Asian countries are rapidly transitioning to renewables and alternative fuels due
to the Middle East oil crisis, with China leveraging reserves and boosting clean
energy, while nations like Indonesia and Vietnam explore biofuels despite environmental
concerns.

### Key Points

 * Geopolitical disruptions in the Middle East, especially in the Strait of Hormuz,
   are causing energy supply shocks, with Asia being the most affected region. 
 * Asia’s high dependence on imported fossil fuels, particularly from the Middle
   East, has led to economic strain, energy emergencies, and increased costs for
   households and industries. 
 * The crisis has forced several Asian countries, including the Philippines, Thailand,
   and India, to implement short-term measures such as subsidies, tax cuts, and 
   increased coal usage, which could hinder long-term renewable energy investments.
 * Countries like Vietnam and China, which have prioritized renewable energy and
   diversified energy sources, are more resilient to energy shocks. 
 * The crisis underscores the importance of clean fuels and renewables for energy
   security, prompting countries to reassess biofuel and clean energy strategies.
 * The 2026 Energy Transition Index (ETI) provides a framework to evaluate how countries
   balance energy security, affordability, and sustainability amid such disruptions.

## How is the current crisis creating critical vulnerabilities for Asia**?**

Asian markets are the top destination for gas exports from Qatar and the UAE. In
2025, nearly 90% of all gas shipped through the Strait of Hormuz headed to Asia,
while just over 10% went to Europe. This heavy reliance is made worse by the lack
of alternative supply routes, unlike Europe, which boosted its gas import options
after Russia’s invasion of Ukraine in 2022.

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## How do recent disruptions in oil markets reinforce the case for clean fuels?

Clean fuels can help countries better handle geopolitical disruptions when made 
from local resources like renewable electricity or homegrown biogenetic feedstocks
and residues. This is pushing governments in Asia and the EU to rethink biofuel 
blending rules and overall clean-fuel plans with energy security in mind. In China,
for example, the top energy authority has vowed to speed up hydrogen industry growth
and take advantage of cheaper sources like domestic wind and solar power.