A complete Strait of Hormuz closure would have a significant impact on Asian energy markets. The Jerusalem Post states that the three major oil importers, Pakistan, Japan, and China, would be most affected, but that Taiwan’s semiconductor industry would also likely suffer a heavy blow.

In addition to relying on oil and energy imports from Persian Gulf countries, Taiwan requires resources such as helium and sulfur to operate semiconductor manufacturing facilities, materials which are primarily sourced from the Middle East.

Bloomberg reported that TSMC produces approximately 90% of the world’s most advanced logic chips. Significant disruptions to the supply of these resources or to Taiwan’s power grid would have a substantial impact on the global technology market. 

While the Taiwanese government states that its energy reserves are sufficient to cope with the impact of the conflict, experts like the head of Morgan Stanley’s Asia technology team, Shawn Kim, remain concerned that a prolonged conflict could trigger a crisis. Kim told Bloomberg that the Strait of Hormuz closing wouldn’t immediately halt chip production, but could increase electricity costs, lower raw material supplies, and affect AI infrastructure.

According to a New York Times report, approximately 80% of the Persian Gulf countries’ oil exports went to Asian countries in 2024. While China is the largest buyer in terms of total imports, Pakistan is the most dependent on Persian Gulf energy, with most of its energy imports transported through the Strait of Hormuz.

Pakistan has already begun implementing a four-day work week, remote learning, and remote work to conserve oil reserves and reduce energy consumption. Meanwhile, India has reported shortages of liquefied petroleum gas used in food preparation, and flights around Asia have been delayed due to the shortage of jet fuel.