Iran War Triggers Global Energy Shock; Pakistan and Bangladesh Reel — What Are India’s Options?

US-Israel-Iran War: The world is facing an energy crisis following attacks on Iran by the US and Israel. Tensions in the Strait of Hormuz and a reduction in Qatar's LNG supply are causing oil and gas prices to rise in Asian countries, impacting the economies and common people of India, Pakistan, Bangladesh, and other nations.

Energy Crisis due to US, Israel, Iran War: The world is facing an energy crisis following attacks by the US and Israel on Iran. In this situation, many Asian countries are turning to coal to cope with this difficult situation. In fact, due to the Iran war, oil supply from the Strait of Hormuz has been disrupted, while Qatar has stopped the production of Liquefied Natural Gas (LNG). It is noteworthy that Qatar supplies about 20 per cent of the global LNG market.

Qatar Exports 80% Fuel to Asia

Qatar exports 80 per cent of its fuel to Asian countries, including Japan, Singapore, Pakistan, Bangladesh, and Taiwan. However, due to the current circumstances in West Asia, many countries are facing supply shortages and price increases, leading companies to turn towards coal-based power plants. Experts believe that if similar conditions persist in West Asia, the crisis could worsen in the coming days. It is important to note that LNG causes less pollution compared to coal.

Impact on Energy Supply in Asian Countries

The Iran war has increased the burden on power companies in Bangladesh. Taiwan is preparing to restart its coal-fired power plants. South Korea has also begun promoting nuclear and coal-based power plants due to the impact on LNG supply.

Impact of the Crisis on Pakistan

The crisis in West Asia has dealt a severe blow to Pakistan's economy. This can be gauged from the fact that Pakistan cancelled the military parade and all formal ceremonies scheduled for Republic Day on March 23. The office of Pakistan's Prime Minister Shehbaz Sharif announced this. Additionally, the Pakistani government increased the prices of kerosene and Light Diesel Oil (LDO) during Ramadan, which has had the most significant impact on middle-class families.

Potential Impact on India

India is also grappling with an energy crisis due to the Iran war. If gas production in Qatar remains affected for a long time, it will directly impact the common people. In such a scenario, India may have to purchase expensive gas from other sources, which could lead to an increase in the prices of domestic cooking gas (LPG). Furthermore, due to the increasing tension in the Strait of Hormuz, some of India's gas tankers are stranded at sea, further increasing the pressure on supply. The West Asian crisis is having a serious impact on the economies and lives of common people in many countries, including India.