Oil Crisis: The ongoing tensions in the Middle East are now impacting the global energy market. Meanwhile, let's explore which countries would be most affected if oil from the Gulf were to cease.

Oil Crisis: Ongoing tensions between Iran, the US, and Israel have shaken the global energy market. Attacks in the Gulf region and blockades near the Strait of Hormuz have pushed global oil prices above $100 per barrel. As the conflict escalates and shipping through this vital chokepoint slows, a major question is being raised worldwide: If crude oil from the Gulf stops reaching the global market, which countries will run out of oil first? Let's find out the answer to this question.

Why is the Gulf so important for global energy?

The Persian Gulf is one of the world's most important energy hubs. Countries like Saudi Arabia, the UAE, Kuwait, Iraq, and Iran meet a significant portion of global oil demand. Much of this oil passes through the Strait of Hormuz before reaching Asia, Europe, and other markets. If this supply route were to be disrupted, Asian economies would be the first and most affected, as many of them rely heavily on Gulf oil for transportation, industry, and power generation.

Countries most affected by oil shortages

Many Asian countries are heavily dependent on imported oil and have limited reserves. If Gulf supplies are completely cut off, these countries could face an energy crisis within weeks. Pakistan is among the most affected countries. It is reported that the country has oil reserves of only 20 to 28 tonnes. Because Pakistan is heavily dependent on imports, any disruption in supply could lead to a serious fuel crisis within a month.

Indonesia and Vietnam are also at high risk. Indonesia's oil reserves are estimated to last about 20 days. Vietnam, meanwhile, may have reserves of about 15 tons, making them significantly more vulnerable to supply disruptions. Thailand and the Philippines have slightly better buffers, with oil reserves estimated to last about 60 tons.

What is the situation in India?

India is one of the world's largest oil consumers. It imports over 80% of its crude oil needs. A significant portion of these imports come from the Gulf region, making the country vulnerable to disruptions there. India currently reportedly has sufficient oil and petroleum stocks to last approximately 50 days. The government has also attempted to diversify its supply sources by importing oil from Russia and other countries, reducing its dependence on Gulf producers. However, Iran has clarified that oil supplies through the Strait of Hormuz are only restricted to ships from the United States, Israel, and their Western allies.

Countries with strong oil reserves

Some countries are much better prepared for a potential oil supply shock. Japan imports approximately 95% of its oil from the Middle East, but it has built up one of the world's largest petroleum reserves, capable of lasting approximately 254 to 260 days. Similarly, South Korea, which is heavily dependent on Gulf oil, still has reserves of approximately 208 to 210 days.

China, the world's largest oil importer, sources nearly half of its oil from the Gulf. Its estimated reserves can last approximately 90 to 104 days. Meanwhile, the United States has become the world's largest oil producer. In addition to domestic production, the United States also has a strategic reserve, which can last approximately 161 to 200 days.

Whose oil will run out first?

If the flow of crude oil from the Gulf were to completely stop, countries with smaller reserves and greater reliance on imports would be the first to face the crisis. Countries like Pakistan, Indonesia, and Vietnam could face oil shortages. While countries like India could last a little longer, countries with large strategic reserves, such as Japan, South Korea, China, and the United States, could sustain themselves for months.

PC: ABPLIVE AI