Tech Insider
A man stands next to a gate with a sign reading
A man stands next to a restaurant gate's notice highlighting a shortage of cooking gas in Varanasi, India.

Niharika KULKARNI/AFP via Getty Images

  • Energy costs are rising globally due to the effective closure of the Strait of Hormuz.
  • Gas price hikes have sparked panic-buying and shortages in China, Chile, and Thailand.
  • The Philippines was the first country to declare a "national energy emergency."

Iran's blockade of the Strait of Hormuz, through which a quarter of global seaborne oil and a fifth of global liquefied natural gas is shipped, has had sweeping implications worldwide.

Rising gas prices amid the Iran war have sparked panic-buying lines and shortages at gas pumps. Other supply chains, such as fertilizer and seafood, could also be in peril.

"Past crises — including COVID-19 and the war in Ukraine — showed how disruptions to energy, transport, and agricultural inputs can quickly spread across interconnected markets," the UN Conference on Trade and Development wrote in a report released March 10.

On Tuesday, the EU's energy commissioner, Dan Jørgensen, warned that the energy crisis is here to stay regardless of when the Iran war ends.

"What I find extremely important is to state as clearly as I can, that even if that peace is here tomorrow, still we will not go back to normal in a foreseeable future," Jørgensen said at a news conference, the Associated Press reported.

Here's how countries and consumers around the world are feeling the effects of the Iran war.

Motorists in Suzhou in eastern China lined up to fill their tanks ahead of an announced gas price hike on March 23.
Cars line up for gas in China.
Motorists queue to fill their tanks ahead of a petrol price adjustment expected on March 23, at a petrol station in Suzhou, in China's eastern Jiangsu province on March 22, 2026.

CN-STR/AFP via Getty Images

China's National Development and Reform Commission had initially announced that the set average price of gas would rise from $4.20 a gallon to $5.10 a gallon, an increase of 90 cents, The New York Times reported.

On March 23, the agency said the planned increase would be lowered to 50 cents, bringing the price to $4.70 a gallon, leading to lines at gas stations on March 22.

Customers in Santiago, Chile, also rushed to gas stations on March 24 ahead of a major increase in fuel prices.
Cars line up for gas in Chile.
Customers wait in line to fuel up vehicles at a gas station in Santiago, Chile, on Tuesday, March 24, 2026. Chile's government will hike fuel prices by as much as 54% on Thursday, stoking expectations for a steep rebound in inflation and triggering a wave of panic buying at gasoline stations across the country.

Cristobal Olivares/Bloomberg/Bloomberg via Getty Images

Jorge Quiroz, Chile's finance minister, announced that the price hikes would take effect on March 26, sparking panic buying as vehicle owners sought to fill their tanks before the change.

On March 26, gasoline prices in Chile increased by about 32%, while diesel rose by 58%, making it one of the most expensive countries for gas in Latin America, UPI reported.

Some gas stations in France have experienced shortages, promising more fuel soon.
A handwritten sign reading
A handwritten sign reading "Plus de Carburant Livraison Lundi" (More fuel delivery on Monday) hangs at a roadside gas station in Boigny sur Bionne, Loiret, France, March 9, 2026

Romain Gautier/Hans Lucas/AFP via Getty Images

Bloomberg reported on April 1 that 900 stations in France have experienced shortages of one or more fuel types, though the energy ministry noted that most incidents can be attributed to logistical issues. Still, some customers were greeted by signs at gas pumps promising upcoming fuel deliveries.

Per GlobalPetrolPrices.com, the average price of gas in France is €1.97 per liter, or over $8 per gallon.

Customers hoping to fill up in Bangkok were met with similar notices.
Empty signs on gas pumps in Thailand.
BANGKOK, THAILAND - 2026/03/16: Several gas stations across Bangkok have reported temporary fuel shortages, with "out of stock" and "awaiting delivery" signs posted at pumps. The crisis stems from escalating military tensions between the U.S., Israel, and Iran, which have severely disrupted global energy supplies and caused the national Oil Fund to plummet. This geopolitical instability has sparked widespread panic buying and fuel hoarding among the public, leading to localized shortages. Consequently, rising transportation costs are now trickling down to consumer goods, driving up prices and causing nationwide economic distress.

Arnun Chonmahatrakool/Thai New/Thai News Pix/LightRocket via Getty Images

Some pumps on March 16 featured signs reading "out of stock" or "awaiting delivery."

In some parts of Los Angeles in March, gas prices exceeded $8 per gallon.
Gas over $8 per gallon in Los Angeles.
Los Angeles, CA - March 19: A gas station on Thursday, March 19, 2026 in Los Angeles, CA

Eric Thayer/Los Angeles Times via Getty Images

As of April 2, the average price per gallon of regular gasoline in California is $5.90, according to AAA. The national average across the US is $4.08 per gallon.

Gas prices in California are typically higher than the rest of the country due to state taxes, stricter environmental regulations, including "cleaner" gas blends, and limited supply compared to other areas of the country.

Two Australian states have offered free public transit to discourage driving.
Commuters board a tram in Melbourne, Australia.
Commuters board a tram in Melbourne, Australia. In Victoria and Tasmania, free public transportation is being offered for a month.

Bloomberg via Getty Images

In Victoria, Australia, the local government said all public transportation will be free until the end of April. In Tasmania, bus and ferry services were made free for three months, The New York Times reported.

Other measures to relieve the cost of living for Australians include the federal government's action to halve the country's tax on gas and diesel for three months.

Porter Airlines was one of the first airlines to announce it would institute a temporary fuel surcharge on some flights.
Porter Airlines planes at an airport.
TORONTO, ON- MARCH 23 - Porter Airlines announced that due to the recent rise in global fuel prices, they are introducing a temporary fuel surcharge on all VIPorter flight redemptions. in Toronto. March 23, 2026. This adjustment will be applied as a 'Peak Surcharge' to each passenger, each way. This update goes into effect for all new VIPorter flight bookings as of March 23, 2026 - any existing bookings are unaffected. Steve Russell/Toronto Star

Steve Russell/Toronto Star via Getty Images

On March 23, Porter began charging a $40 peak surcharge for flights within North America and an $86 fee per leg for international flights, when booked with loyalty points through the Canadian airline's VIPorter redemption program.

"We want to be transparent about why this change is necessary," Porter wrote in an email to customers. "Fuel represents the highest cost of airline operations and this surcharge allows us to maintain the number of points required for redemption."

Other airlines have since introduced fuel surcharges, including Hong Kong's Cathay Pacific, which said it would increase its surcharges by approximately 34% from April 1.

"If the steep increase of fuel costs cannot be effectively mitigated, we would ⁠not be able to sustain the effective operations of our network," the airline said, adding it would review the surcharge every two weeks.

SAS Scandinavian Airlines, Qantas, Air India, Air France-KLM, and Thai Airways also announced plans to adjust their fares.

Street vendors in New Delhi have switched to electric, coal, wood, and kerosene stoves amid a shortage of LPG gas cylinders.
A tea seller uses a coal stove in New Delhi.
NEW DELHI, INDIA - MARCH 22: A tea seller use coal stove due to shortage of LPG Gas cylinder at Tank Road Karol Bagh, on March 22, 2026 in New Delhi, India. The crisis, triggered by the ongoing West Asia conflict and the blockade of the Strait of Hormuz, has forced thousands of Delhi's street vendors and dhaba owners to abandon gas burners for Electirc coal, wood, or kerosene stoves.

Ishant Chauhan/Hindustan Times via Getty Images

Amid the shortage of liquefied petroleum gas (LPG), which is used across India for everyday cooking, a tea seller on Tank Road in Karol Bagh, New Delhi, was photographed heating tea with a coal stove on March 22. Many eateries in the country have had to scale back their menus or close completely.

Gas shortages are affecting restaurants in India, too.
A man stands next to a gate with a sign reading
A man stands next to a restaurant gate's notice highlighting a shortage of cooking gas in Varanasi, India.

Niharika KULKARNI/AFP via Getty Images

Per Reuters, India is the world's second-largest importer of LPG.

Shortages have hit the country's restaurant industry hard, and price spikes for products like sunflower oil have added insult to injury.

President Ferdinand Marcos of the Philippines declared a state of "national energy emergency" on March 24.
Philippine President Ferdinand Bongbong Marcos Jr. greets passengers on a bus.
Philippine President Ferdinand Bongbong Marcos, Jr (C) visits the Paranaque Integrated Terminal Exchange (PITX) to personally oversee the initial rollout of fuel subsidies for public utility vehicles (PUVs) and ensure that the distribution process is smooth and well-organized in Metro Manila, Philippines on March 24, 2026. With rising fuel prices, the government continues to provide financial assistance to drivers and operators of PUVs. The initiative is part of the PhP2.5-billion allocation for PUVs under the Department of Transportation (DOTr) Fuel Subsidy Project. Under the program, bus operators receive PhP10,000 per unit, while drivers are entitled to PhP5,000 each.

Philippine Presidential Com. Office/Handout/Anadolu via Getty Images

The executive order stated that the war in the Middle East had resulted in "imminent danger posed upon the availability and stability of the country's energy supply."

The Philippines also rolled out fuel subsidies for public utility vehicles to help them absorb climbing costs.

Thailand's prime minister is ordering government workers to remove their jackets to save on air conditioning use.
A sign announcing 'Diesel fuel has run out' is displayed on a gas staton, in Prajuab Kirikhan, Thailand, Wednesday, March 18, 2026.
A sign on a gas station in Prajuab Kirikhan, Thailand, on March 18 said. "Diesel fuel has run out."

AP Photo/Grant Peck, file

In Thailand, Prime Minister Anutin Charnvirakul directed all government workers to work from home. Other measures for civil workers include orders to cancel trips overseas and use stairs instead of elevators, Reuters reported.

As part of the prime minister's directive, government buildings were also ordered to conserve air conditioning by limiting its temperature to a minimum of 27 degrees Celsius — about 80 degrees Fahrenheit —meaning workers were urged to ditch their suit jackets. Three news anchors for Thailand's Public Broadcasting Service showed their compliance with the measure by removing their jackets live on air.

Roughly 10% of Thailand's workforce is in the public sector, per the World Bank.

Additionally, many fishing vessels in Thailand have halted operations due to the prohibitively high cost of boat fuel.
Docked fishing boats in Narathiwat Province, Thailand.
Docked fishing boats in Narathiwat Province, Thailand.

Ploy Phutpheng/SOPA Images/LightRocket via Getty Images

About 40% of Thailand's 9,000 registered fishing vessels had paused operations, a Thai official told the Bangkok Post in a March 21 report.

The reduction in fishing is expected to push up seafood costs. Seafood vendors have already raised prices of some items by 5 to 20 baht, or between around 15 and 61 cents, per kilogram, according to The National Fisheries Association of Thailand.

Raw materials shortages have also affected plastic film factories.
A plastic film factory worker in South Korea.
An employee works at a plastic film factory in Ansan, South Korea, March 25, 2026. Plastic film factory suffer from unstable polyethylene supply amid the U.S.-Israeli conflict with Iran, in Ansan.

Kim Hong-Ji/REUTERS

A plastic film factory in Ansan, South Korea, reduced its output from 100 tons per day to 20 to 30 tons per day due to unstable supplies of the polyethylene needed for production, its manager, Choi Gun-soo, told Reuters in a March 26 report.

Myanmar is rationing vehicle use based on their license plate numbers.
A taxi in Myanmar drives in front of parked cars and buildings.
A taxi in Myanmar. The junta's license-plate-based rationing measures took effect in March.

Sai Aung MAIN/AFP via Getty Images

Myanmar's military junta cited energy shortages as a result of the war in Iran when it announced new rationing measures in March. Per Reuters, cars with even-numbered license plates are only permitted to drive on even-numbered dates, and vice versa.

Myanmar's civilians expressed frustration with the plan, telling Reuters the measures only added further complications to the high cost of living.

Sri Lanka has instituted a fuel-rationing system using QR codes.
A fuel station employee and customer hold their two phones up to each other.
A fuel station employee checks a customer's fuel QR Code in 2022, the last time the system was implemented.

Anadolu/Anadolu Agency via Getty Images

Since March 15, the Sri Lankan Ministry of Energy has instituted a system using QR codes that implements weekly fuel quotas depending on the type of vehicle. Standard cars are permitted 15 liters, or 4 gallons, of gasoline per week.

The system was also used during the 2022 energy crisis after Russia invaded Ukraine.

Sri Lanka is also saving energy in other ways.
An employee at Sri Lanka's Government Information Department in Colombo sitting at his desk, working without a fan or lights.
An employee at Sri Lanka's Government Information Department in Colombo works without a fan or lights.

Ishara S. KODIKARA/AFP via Getty Images

Sri Lanka's government instituted a four-day workweek for the public sector in an attempt to conserve energy, Fortune reported. Private companies were also asked to follow the measure.

Photos also showed employees at Sri Lanka's Government Information Department working without lights and fans.

The closure of the Strait of Hormuz has also raised concerns about global fertilizer supply shortages affecting food security and prices.
A Kashmiri farmer sprinkles fertilizer.
Aaqib Ahmad, 23, a Kashmiri farmer, sprinkles fertilizer near a mustard field on the outskirts of Srinagar, Jammu and Kashmir, on March 22, 2026. The ongoing Iran-Israel conflict has disrupted Middle East fertilizer supplies, with up to 30% of global urea shipments at risk due to closures and military operations around the Strait of Hormuz. This situation is increasing global prices, affecting crop yields in the Northern Hemisphere, and adding pressure on global food security.

Firdous Nazir/NurPhoto via Getty Images

About one-third of the global seaborne fertilizer trade passes through the Strait of Hormuz, according to a report released by the UN Conference on Trade and Development on March 10.

The report added that the shipping disruption is "raising concerns about ripple effects across global markets."

Read the original article on Business Insider
Economy, Business
economy, energy-crisis, us-iran-war, gas-prices
Source
Photos show how the energy crisis is disrupting daily life around the world