The Iran war has disrupted multiple sectors, with aviation and energy industries among the hardest hit as regional tensions escalate.
South Korea Introduces Driving Bans
South Korea remains one of the regions most severely affected by the fuel shortages as the country relies on imports for over 90% of its energy needs, with 70% of its crude oil shipments arriving from the Gulf region. However, the country’s oil reserves risk running out as the situation in the Middle East worsens, the Telegraph reported on Monday.
The report also said that South Korean government employees had been directed to stop driving one weekday out of five as petrol reserves dry up and fuel prices at the pump surge. The government has set aside 26 trillion South Korean won (nearly $17 billion) to purchase fuel as soon as the strait opens up.
The report also says that residents have been urged to also take steps to slow down energy consumption, including charging EVs and phones during the day, reducing time spent in the shower, using vacuum cleaners and washing machines on the weekends only, cycling more, etc.
The country will also focus on increasing Nuclear energy outputs and is halting exports of jet fuel to prioritize domestic airlines.
Europe’s Jet Fuel Shortages
Speaking of airlines, European countries have been grappling with shortages of jet fuel as the Strait of Hormuz remains shut, according to a report by OilPrice.com on Sunday, citing the shutdown of the refineries in the region due to emissions-related rules and declining demand, which led to an increase in dependence on imports.
Citing statements from German airline Deutsche Lufthansa (OTC:DLAKY), the largest flight operator in the region, the report pointed towards the airline retiring some aircraft early, as well as reducing its flight operations amid “increased kerosene costs and additional burdens from labor disputes.”
It’s worth noting that fuel costs have also impacted airlines in the U.S., with Transportation Secretary Sean Duffy earlier signaling President Donald Trump‘s approval for possible mergers between U.S. airlines amid rising jet fuel costs.
According to data from Airlines for America, a gallon of jet fuel cost $3.87 on Monday.
How Is China Holding Up?
As China is also dependent on imports to fulfill energy needs, questions remained over the impact of the Strait of Hormuz shutdown. China imports over 70% of its crude oil, or over 11.9 million barrels per day, while also being the largest importer of Liquefied Natural Gas (LNG).
However, a report from CNN on Monday suggests that China may not be as impacted by the crisis as one might think. Xi Jinping and Beijing have worked on reducing the country’s reliance on foreign energy sources, investing heavily in renewable energy sources like wind and solar power, as well as building oil pipelines from Russia, Central Asia and Myanmar, the report said.
EVs, Bolstering Domestic Production
The rapid advancement of EVs has also decreased oil demand in China by up to 1 million barrels per day, the report said, while clean energy exports like Wind turbines and Lithium-ion batteries up 45% and 50% respectively, in the first quarter of 2026.
Chinese EVs have also been gathering steam in Europe, with BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF) consitently surging in triple-digit percentages in the region over the past year, far outpacing its rival Tesla Inc. (NASDAQ:TSLA) in sales in Europe and worldwide.
It is also ramping up domestic oil production by digging new wells in Xinjiang province, as well as utilizing its reserves in the Bohai Sea, the report said. However, the country still heavily relies on coal to produce electricity.
US-Iran War
Meanwhile, Trump has threatened Iran with strikes, warning that a failure to reach a deal with the U.S. could result in intense military action against the country. The strikes could potentially target critical infrastructure, including bridges.
As tensions escalate, allegations of insider trading have also surfaced against Trump, with investor Peter Schiff sharing that Trump’s comments about Iran last Friday via Truth Social pointed towards “market manipulation. The allegations have also been put forward by Governor Tim Walz (D-Minn).
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