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 affectedHotel 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 expect the concerned Union Ministers to take immediate action in this regard and resume commercial gas supply and provide support to the hotel industry. Hotels will be closed from tomorrow due to the gas supply being cut off,” the release said.Meanwhile, the Indian Hotels and Restaurants Association (AHAR) of Mumbai said that the hospitality industry was facing “serious difficulties in procuring commercial gas cylinders”.“This shortage is creating significant operational challenges for many establishments within the hospitality sector,” it said.AHAR respectfully brings to the attention of the Hon’ble Minister for Petroleum and Natural Gas that many of our members from the hospitality industry are currently facing serious difficulties in procuring commercial gas cylinders.Despite being a basic operational requirement… pic.twitter.com/CEnx09DmCA— AHAR – Indian Hotels and Restaurants Association (@AharAssociation) March 9, 2026Speaking to IANS, AHAR president Vijay K. Shetty alleged that “20% of our hotels have closed due to the short supply of LPG cylinders”, and said that if the trend continued, “it is expected that at least 50-60 more hotels may shut down in the next 2-3 days”.Similar statements have also been made by hotel associations in Chennai and other cities.Earlier on Monday, the National Restaurant Association of India wrote in a statement that while the government said it had not banned commercial LPG cylinder supplies, “the ground situation is different, with suppliers expressing inability to supply the same”.Nearly 40% of Indian crude imports – which make around 85%-88% of India’s oil needs – originate from West Asia and travel through the Hormuz Strait, per Reuters.Meanwhile, state-owned OMCs have explained the procedure for non-domestic LPG consumers to access supplies in the coming days:In light of current geopolitical disruptions affecting global fuel supply, steps have been taken to enhance LPG production and prioritise its availability for domestic consumers and essential non-domestic sectors such as hospitals and educational institutions.Requests from… pic.twitter.com/jabsTt09rf— Hindustan Petroleum Corporation Limited (@HPCL) March 10, 2026Crisis management in BangladeshThe Bangladesh government has formed a high-level committee to formulate a crisis management plan with an aim to maintain economic stability amid the ongoing West Asia conflict, The Daily Star reported.The country relies on imports for nearly 95% of its energy needs.The Telegraph reported that it has also begun receiving diesel imports including China and India amid fear of fuel shortage, with officials now saying the country now has enough fuel to cover about one month of demand.The government has also imposed fuel rationing for vehicles, restrictions on diesel sales and shut its universities as the war on Iran causes severe disruption to Middle East oil exports.Meanwhile, it is also reportedly facing pressure to reduce subsidies under conditions linked to its loan programme with the International Monetary Fund (IMF), creating policy and structural challenges for the sector.Fuel-saving measures in PakistanOn Monday, Pakistani Prime Minister Shehbaz Sharif announced a number of fuel-saving measures to combat the West Asia crisis that has affected oil prices as well as its supply. “To stabilise the economy we have taken difficult decisions,” he said, Reuters reported.According to the report, the Pakistan government has decided to reduce all workforce by half, except in essential services, while government offices will operate four days a week. Departmental expenditure will be cut by 20% for the next two months, and fuel allocations to government departments’ vehicles will be reduced by 50%.Schools will be shut for two weeks from next week, while universities will shift to online classes to reduce commuting.According to a Hindustan Times report, cabinet ministers will also not get their salaries for the next two months, he announced.Nepal on ‘wait-and-watch’ modeThe Nepal Oil Corporation (NOC) has adopted a wait-and-watch approach amid mounting pressure to revise fuel prices in light of the sharp increase in global oil prices, although it has ruled out the possibility of a shortage of petroleum products, including cooking gas.The corporation’s managing director Chandika Prasad Bhatta, managing director of NOC, was quoted by Republica as saying it has not received any concerning notices from Indian Oil Corporation (IOC) despite the ongoing instability.“We currently have diesel and petrol stocks sufficient for 13 days, and air turbine fuel for more than 15 days. Additionally, we are receiving uninterrupted fuel supplies through cross-border pipelines,” Bhatta was quoted as saying.Any revisions, Bhatta added, would depend on the new rates from IOC, expected in the coming days.The NOC depends on IOC for nearly all of its imports of petroleum products through a long-term, exclusive supply agreement.Price hike in Sri LankaAccording to a report by EconomyNext, while Sri Lanka’s Central Bank has maintained that the country is in a “much better position” than in 2022, when it faced its worst economic collapse, a 20% jump in global fuel costs is bound to impact the country.As per the report, the government has already raised the diesel price by 7.8% and petrol price by 10% with effect from Tuesday.Sri Lanka relies on imported fossil fuels for nearly 40% of its electricity generation and its entire transport sector.This means the state-owned Ceylon Petroleum Corporation (CPC) is forced to implement frequent price hikes, with some estimates suggesting a 25-30% rise in pump prices within a single quarter, according to the report.These price hikes are expected to have a direct impact with transport fees driving up the price of essential food items.The state-run power utility companies could also impose emergency fuel surcharges on electricity bills, impacting businesses and households alike.The energy crisis is also a major setback to Sri Lanka’s economy which is still recovering from the 2022 bankruptcy.Impact on MaldivesIn the Maldives, much of the electricity, marine transport and fisheries sector depend heavily on imported diesel. As a result, a sustained hike in global fuel prices impacted by the US-Israel war on Iran, could also mean higher domestic operating costs.Speaking at a press conference on March 3, economic minister Mohamed Saeed had assured that the Maldives will not face a shortage of basic food, oil and gas due to the ongoing conflict.However, on March 5, state-run Fuel Supplies Maldives (FSM) increased fuel prices by up to 26%, according to Maldives Maritime Journal, as global oil prices surge amid the escalating situation in West Asia. Moreover, increased freight surcharges and insurance premiums could drive up the cost of consumer goods, food, fuel and construction materials, the impact of which will be faced by retailers who might experience stock shortages and uncertain delivery times.Maldives’ former economic minister Ahmed Mohamed (Andey) was quoted by media outlet Sun Siyam as saying that the ongoing conflict could increase the Maldives’ daily fuel import bill by USD 1 million, warning that the country faces severe exposure to global oil price shocks.Over the last few days, several oilfields in the Gulf have come under attack due to the retaliatory strikes from Iran. In Bahrain, the Bapco oilfield came under drone attack, forcing the company to declare force majeure on all its shipments.“Bapco Energies declares a force majeure situation on the group’s operations,” reported the state-run Bahrain News Agency.On Monday evening, Saudi Arabia’s defence ministry said that its air defences intercepted and destroyed 12 drones targeting an oilfield in the country’s south. Earlier on March 2, an Iranian drone strike had targeted Aramco’s Ras Tanura oil refining facility, igniting a fire outbreak.The conflict which began on February 28 and escalated following the assassination of Iran’s Supreme Leader Ayatollah Ali Khamenei in a US-Israeli missile strike does not seem to have an end in sight. Hours after US President Donald Trump said he expects the war to end “very soon”, on Tuesday (March 10), he said the US will hit Iran “TWENTY TIMES HARDER” if Tehran stops the flow of oil through the Strait of Hormuz.