Perspective – Written by László Csicsmann & Stephen R. Nagy
The recent attacks by Israel and the United States on Iran’s clandestine nuclear facilities have had a detrimental effect on the economic and energy security of the Indo-Pacific region. The dependence of major Indo-Pacific economies on oil trade that traverses the Strait of Hormuz is not trivial. Recent statistics indicate that 84 percent of crude oil shipments and 83 percent of natural gas trade passing through the strait are directed towards Asian markets. While not without difficulties, given the current state of U.S.–China strategic competition, several approaches could promote energy security in the region. These could include enhancing maritime governance and increasing naval presence and deployment in the Strait of Hormuz. Second, deeper engagement and active diplomacy with regional entities, particularly the Gulf Cooperation Council (GCC) and Iran. Third, reducing the proportion of fossil fuels in national energy mixes and expanding the use of renewable sources. Fourth, identifying alternate sources of fossil fuels and investing in other energy corridors.
The full analysis is available here.