Thailand named among Asia’s hardest hit as Iran shuts Strait of Hormuz
CNBC says Thailand is among Asia’s most exposed economies to higher oil prices after Iran’s Strait of Hormuz closure threatens crude and LNG flows.
A CNBC report on Tuesday (March 3) said Thailand has been singled out as one of the Asian countries likely to face the most severe fallout from higher oil prices after Iran announced it had closed the Strait of Hormuz.
Senior commanders in Iran’s Islamic Revolutionary Guard Corps (IRGC) have also warned that any ship attempting to transit the waterway would be attacked.
Strait of Hormuz: the heart of global energy trade
CNBC, citing energy consultancy Kpler, said the Strait of Hormuz — between Oman and Iran — carried about 13 million barrels a day of crude oil in 2025, or roughly 31% of global seaborne crude flows.
The report said roughly 20% of global LNG exports transit the strait, much of it tied to Qatar. It added that Qatar has temporarily halted LNG output after Iranian drone attacks hit facilities in the Ras Laffan and Mesaieed industrial cities.
Thailand faces highest risk in ASEAN
CNBC cited Nomura analysis saying Thailand is among the most exposed Asian economies to an oil-price shock, as the country’s net oil imports amount to 4.7% of GDP, the highest share in the region.
Nomura said that for every 10% rise in oil prices, Thailand’s current account balance could worsen by about 0.5% of GDP — a significant concern at a time when Brent prices have already climbed more than 10% since the conflict erupted. Brent crude was trading at around US$81 a barrel on Tuesday.
The CNBC report said some analysts believe that if the closure drags on, oil prices could surge beyond US$100 a barrel.
Asia-wide impact
CNBC said other Asian economies would see varying degrees of impact. Nomura identified India, South Korea and the Philippines as vulnerable due to high reliance on imported energy.
Nomura added that South Asia could face the most immediate LNG shock. It said Qatar and the UAE account for 99% of Pakistan’s LNG imports and 72% of Bangladesh’s imports, while India would face a double hit from higher crude import costs and surging LNG prices.
Nomura also said Japan and South Korea depend heavily on Middle East oil — around 75% and 70% respectively — and have LNG stockpiles sufficient for only 2–4 weeks.
China, meanwhile, was described as better placed in the short term, with Nomura estimating about 40% of its oil imports pass through Hormuz, but noting it holds over 7.6 million tonnes of LNG in storage, providing a temporary buffer.
Malaysia was cited as an exception: as an energy exporter, higher oil prices could benefit government revenues, Nomura said.
