The ongoing military conflict in West Asia involving Israel and the US on the one side and Iran on the other has heightened geopolitical tensions and geo-economic uncertainty. How long the conflict will last and what will be the outcome is anybody’s guess at this time.

The impact on global commodity markets in general and energy markets in particular is severe. With the virtual closure of the critical passage through the Strait of Hormuz, energy supplies (crude and LNG) face massive disruption.

Energy infrastructure in the Gulf has faced attacks even as many producing countries have shut down production. Security risks have forced down tanker movements, freight rates have surged and insurers have turned extremely hesitant.

No wonder crude oil prices have spiked, with Brent breaching the psychological $100 a barrel. Natural gas prices, too, have moved up sharply. It is well recognised that the Asian region is a net oil importer and, therefore, exposed to shocks from supply disruption and higher global oil prices.

According to the International Energy Agency, the Asia Pacific region was a net importer of crude oil, gas and coal for the decade through to 2023. These economies still use oil, coal and........

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