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New Delhi: As the United States-Israel war on Iran and Tehran’s retaliation continues for the second week, the repercussions are being felt across South Asia. The heightened geopolitical tensions and closure of the Strait of Hormuz have jolted the global energy landscape and raised oil prices.

The Strait of Hormuz, a narrow sea passage that separates the Arabian Peninsula and Iran and also connects the Persian Gulf with the Gulf of Oman and the Arabian Sea, is a key trade artery and a primary export route for oil and natural gas produced by Saudi Arabia, the UAE, Kuwait, Qatar, Iraq, Bahrain and Iran. Nearly 80% of oil and oil products transiting through this route are destined for Asia.

The United States has struck oil storage facilities in Iran, and although Iran’s exports are limited by American sanctions, the shipping disruption has made global prices zoom. Iran’s retaliatory attacks have sparked fears of the war reaching oil facilities, pipelines or ports in the Gulf region, making companies pause or slow operations, asking tankers to avoid certain ports, further spiking costs and constraining supplies.

On Monday, Brent crude oil surged past USD 100 a barrel, before falling again, amid concerns about potential shortages due to the continued disruption to West Asia’s energy supplies. Amid the uncertainties, governments across South Asia moved to swiftly introduce emergency measures for damage control and to stabilise energy supplies.

India’s Union ministry of petroleum and natural gases has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use. The ministry said that it has prioritised domestic LPG supply to households, and commercial to essential sectors like hospitals and educational institutions.

Meanwhile, for LPG supply to other non-domestic sectors, a committee of three Executive Director-level officials of Oil Marketing Companies has been constituted to review the “representations” for LPG supply to restaurants, hotels and other industries.

Hoteliers and restaurants in India affected

Hotel associations across Indian cities have released statements saying the disruption of commercial gas supply has severely impacted the industry.

“The supply of gas cylinders for commercial use has been stopped from today. Since the hotel industry is classified as an essential service, the common people, senior citizens, students, medical and other people who depend on it will face difficulties in their daily meals. In addition, our hotel industry will also have to face difficulties until the gas supply returns to normal,” the Bangalore Hotels Association said in a press release.

The hoteliers’ group also said that this was despite oil companies promising there would be no disruption in gas supplies for 70 days, demanding the concerned Union Cabinet ministers step in and take action.

“Oil companies had said that there would be no disruption in gas supply for 70 days. However, the sudden stoppage of supply is a big blow to the hotel industry. Therefore, we........

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