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The long shadow: Gulf war will hurt Asia for years to come
The shock of war could trigger an enduring energy and food crisis as the damage will take a long time to fix.
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A farmer preparing fertiliser in Haryana, India. The shutdown of Gulf gas supplies not only means higher electricity bills but also higher food prices.
PHOTO: REUTERS
Wars end, but the damage they leave behind does not – at least not quickly. The closure of the Strait of Hormuz may end up being a short-term disruption in energy supply. But even if a ceasefire in the Gulf came tomorrow, the energy infrastructure that has been destroyed or disabled over the past three weeks will, in some cases, take years to repair.
For Asia, which buys most of the Gulf’s oil and gas, that is not just a short-term supply disruption. It is a structural shock that will reshape energy markets, raise costs, slow economies and force a rethink of energy strategy.
