(30 April 2026 – Asia) Energy disruptions from the US/Israel – Iran War are forcing governments across Asia to reassess their reliance on imported fossil fuels, with important implications for major banks and financiers.
Corporates and policymakers are reviewing energy security closely as fears grow that the blockade of the Strait of Hormuz could become further protracted. Were this to occur it will likely accelerate the push toward decarbonisation.
Momentum is building in climate finance as Japan looks for ways to reduce long-term exposure to oil volatility. Sustainability-related bond issuance is set to stabilise this year after two years of decline, with fossil fuel tankers stuck in the Persian Gulf strengthening the case for diversification in the resource-poor country.
Importantly a Japanese owned crude oil tanker passed through the Strait of Hormuz en route to Japan signalling the first time that a crude oil tanker headed directly for Japan has left the Persian Gulf since operations against Iran began on 28 February.
Indonesia, one of the world’s largest coal producers, is also signalling a shift. President Prabowo Subianto has pledged to accelerate his country’s energy transition, framing the global oil crisis as a wake-up call for Southeast Asia’s largest economy.
Rapid growth continues in the solar panel market, evidenced by China’s solar exports surpassing a level equivalent to Spain’s entire installed solar capacity, Nikkei reports.
Ensuring reliable power remains the overriding priority. Japan is considering temporarily easing restrictions on coal-fired power plants, while Taiwan is moving ahead with nuclear restarts to secure stable electricity supplies.
For the private sector, the crisis is creating both risks and opportunities. China’s BYD is emerging as a key beneficiary, with surging oil prices boosting electric vehicle demand.
“Higher fuel costs could lift overseas sales to another level, prompting us to raise global targets” commented BYD Founder and Chairman Wang Chuanfu.