Japan and South Korea face severe oil vulnerability amid Middle East tensions

In recent months, the ongoing tensions between Israel and Iran have underscored Asia's significant reliance on oil and gas imports from the Middle East, revealing vulnerabilities for several countries in the region. Japan and South Korea are identified as the most exposed, with Japan depending on imported fossil fuels for 87% of its total energy and South Korea for 81%. The oil and liquefied natural gas that they import predominantly transit through the strategically crucial Strait of Hormuz, which accounts for three-quarters of Japan's oil imports and over 70% for South Korea. In contrast, countries like China and India have made strides in diversifying their energy sources and investing in renewable energy, albeit with varying degrees of success. China has particularly adopted measures to reduce its liquefied natural gas imports by boosting domestic clean energy production and diversifying its supply chain. Despite these efforts, China remains the world's largest oil importer, continuing to rely heavily on Middle Eastern oil, which constitutes nearly half of its imports. The looming risks of potential disruptions in energy supply, be it through blockades or price volatility, extend beyond these countries, potentially impacting others in Asia. Analysts have stressed the importance of developing renewable energy capacity as a proactive strategy for energy security. Southeast Asia, which has become a net oil importer, further faces challenges as demand continues to rise while renewable energy uptake fails to keep pace. Consequently, both Japan and South Korea must implement significant increases in solar and wind energy installations to meet their 2050 net-zero carbon emission targets. The need for regulatory reforms to support offshore wind projects and overcome existing barriers is imperative if these countries are to achieve energy security and remain resilient against the volatility of global energy markets.