After Hormuz Closed, Asian Economies Turned to Alternative Energy Routes

According to EcoIran, published Saturday, August 22, 2026 (31 Mordad 1405), before the war began, about 80 percent of Asia's oil imports and nearly 27 percent of its liquefied natural gas (LNG) imports transited the Strait of Hormuz. After the strait closed, countries more dependent on that route were forced to activate alternatives, including buying more oil and gas from the United States and Russia, drawing on strategic reserves, and using pipelines, ports outside the Persian Gulf, and longer shipping routes.

Per the report, Japan managed part of the shock by drawing on strategic reserves while simultaneously increasing oil imports from the United States; China moved to cut oil consumption and expand electric vehicle use; and India significantly increased its oil imports from Russia. Indonesia also increased oil imports from Russia and pursued biofuel development, South Korea diversified its import sources, and Taiwan increased purchases from Australia and the United States and temporarily turned to coal to reduce its dependence on Qatari LNG. EcoIran writes that even if traffic through Hormuz fully returns to normal, Asia's energy trade will likely not return to its pre crisis state, since some of the new contracts and shifts in consumption patterns are expected to persist.