The oil shocks triggered by the U.S.-Israel-Iran conflict are spreading across Southeast Asia, with skyrocketing oil and gas prices disrupting lives. In countries like the Philippines, Vietnam, and Cambodia, gas stations are running out of fuel, with fishermen, tricycle drivers, and truck drivers facing work stoppages. Some temples in Thailand are even unable to maintain cremation services.
On March 18, 2026, in Narathiwat, Thailand, people are seen queuing at a gas station to refuel. (Visual China)
According to CCTV news, international crude oil futures prices broke the $100 per barrel mark again as of the evening of March 15. Countries like the U.S., Germany, Japan, and South Korea have decided to release strategic oil reserves.
Many Southeast Asian countries have very limited oil reserves. Japan and South Korea’s reserves can last over 200 days, while Indonesia and Vietnam have only about 20 to 23 days, Myanmar about 40 days, and Thailand about 100 days. Southeast Asia heavily relies on oil transported through the Strait of Hormuz. Nearly 80% of crude oil imports come from the Gulf, with about a quarter of liquefied natural gas also needing to pass through the strait.
According to the New York Times, the Philippine government is providing about $84 in subsidies to thousands of tricycle and jeepney drivers in Manila. In Laos, over 40% of gas stations have closed due to supply shortages from Thailand, which is also struggling with fuel shortages. Similarly, nearly one-third of gas stations in Cambodia, which imports fuel from Thailand and Vietnam, have ceased operations.
In Vietnam, the government strongly advises office workers to work from home unless necessary. Meanwhile, Thailand’s government officials have donned short-sleeved shirts and encouraged civil servants to follow suit as air conditioning in government buildings has been raised to about 26 degrees Celsius.
On March 17, Thailand announced that it has signed new oil procurement contracts with Angola and the U.S. However, they also stated that due to the inability to borrow more funds from the national oil fund, they have to allow oil prices to rise. The president of the Thai Land Transport Federation criticized the government for being ‘inept and poorly managed,’ leading dozens of truck drivers to park their vehicles along the road to Laem Chabang port in protest. The fishing industry in Thailand has also been affected, with some fishermen unable to go out to sea. A leader from a coastal fishermen’s organization in Nakhon Si Thammarat stated, ‘This crisis originated abroad, but we are the ones suffering.’
According to the Nikkei Asia Review on March 20, fuel shortages have even impacted Thailand’s funeral industry, with several temples suspending free cremation services, as the cremation process primarily uses diesel, and many gas stations report they have no diesel left to sell. Temples in remote areas of Thailand are most severely affected, with cremation costs rising about 25%, reaching approximately 6,000 baht per cremation.
For economically struggling Myanmar, this oil shock adds more difficulties. This month, the military government implemented odd-even driving regulations to conserve fuel.
Even in Singapore, the government has warned of potential electricity price increases. Last year, about 47% of the country’s liquefied natural gas came from Qatar. Singapore’s President Halimah Yacob stated that Singaporeans must ‘prepare for a long global political turmoil storm.’