India and neighbours weather the Hormuz blockade

South Asian countries have been badly affected by the virtual closure of the Strait of Hormuz. Kavita Chowdhury reports on how fuel shortages are affecting people in India, Bangladesh and the Himalayan region.

Iran’s blackout state

Iran has been under an internet blackout since the war began at the end of February. This follows an earlier 21-day blackout in January during the nationwide uprising against the Islamic Republic. Together, the two shutdowns mean Iranians have been cut off from the global internet for roughly 72 per cent of the year so far. As Nazenin Ansari reports, this suggests that the core conflict in Iran may not be between Tehran and foreign adversaries, but between the Islamic Republic and Iranian society itself.

Pakistan and Afghanistan navigate the Hormuz blockade

The prolonged blockade through the Strait of Hormuz is raising costs and uncertainty across South and Central Asia. Few countries are as exposed as Pakistan and Afghanistan. Yet while the crisis threatens economic disruption, it has created an opportunity for Islamabad to reposition itself as an increasingly consequential diplomatic and logistical actor, as Iftikar Firdous reports.

Dire straits: the farming crisis

In eastern India, the effects of the Iran war are showing up not in fuel queues or port delays but in the calculations farmers make before sowing. The kharif season begins with the southwest monsoon, which advances across India during June. That is when demand rises for urea, India’s most widely used nitrogen fertiliser. If supplies are tight at this time the consequences appear later in weaker harvests. Rahul Jaywant Bhise writes on how the blockade of the Strait of Hormuz is turning an energy shock into a fertiliser and food-security crisis across Asia.

Sri Lanka’s recovery hit by Hormuz blockade

Sri Lanka finds itself once again listening anxiously to developments unfolding thousands of kilometres away in the Middle East. The Iran conflict, and wider instability involving Israel, the United States and the Gulf region, has cast a long economic shadow over the island, as Eranga Pereira reports from Colombo.

Is Japan aiming to be a regional power?

Japan was not at the table when Donald Trump and Xi Jinping agreed to a ‘constructive relationship of strategic stability’ in Beijing. It did not need to be. At the time of the Beijing talks its navy was engaged in a seven-country naval exercise off the Philippines, writes Howard Zhang.

Trump, the nation builder

President Trump’s state visit to China in May attracted enormous attention across the country. Social media buzzed with commentary, speculation and mockery in equal measure. Lijia Zhang writes that beneath the jokes lies something more serious: Donald Trump has become a symbol of how profoundly Chinese perceptions of the United States have changed.

Life in limbo: Iran under a fragile ceasefire

The bombings may have stopped, but life in Iran feels anything but normal. Weeks after a fragile ceasefire ended the 40-day war between Iran, the United States and Israel, the nation remains trapped in a state of fear, exhaustion and uncertainty, as Fariba Sahraei reports.

The Xi-Trump talks: was anything achieved?

The talks between presidents Xi Jinping and Donald Trump were important and timely though the mood music was subdued. Expectations were low and were, if anything, underachieved with little more than a few gestures of commercial goodwill. Former British minister for Business, Skills and Innovation Vince Cable reports.

Dire Strait

Bisinomics

India Narendra Modi has advised Indians not to travel abroad for  holidays and weddings. He also asked people to work from home  and use public transport. India is the world’s third-largest importer of oil. It faces a  ballooning economic challenge because of the sharp increase in  energy prices and an uncomfortably low level of reserves caused  by reduced supplies from the Persian Gulf following the virtual  closure of the Strait of Hormuz. ‘We must curb our use of petrol and diesel,’ Modi said in a  speech. ‘In cities with metro lines, we should use the metro  wherever possible… We must also place a strong emphasis on  saving foreign exchange.’ As Indians braced themselves for a  further escalation in energy prices, Modi’s critics mocked him for  not practising what he was preaching by taking off on a  five-nation overseas trip. They said hands-on economic  management was the national priority. The Financial Times reported that India ‘imported $174 billion of  oil and gas last year, with two-thirds of natural gas and half of  crude oil imports [coming] from the Gulf’. India has returned to  sourcing oil from Russia – after obsequiously obeying orders  from United States President Donald Trump not to, before Mr  Trump partially waived sanctions in March. The Indian cabinet,  meanwhile, approved expanded gas production from coal on an  urgent basis. Shortage of cooking gas has disrupted homes and  debilitated hotel and restaurant businesses.  Commuters crowd public transport in India as rising fuel costs and supply disruptions intensify pressure on households and businesses. Photo: EPA The FT reported that ‘higher import prices have hurt the Indian  currency and knocked investor confidence’. It added that ‘the  rupee has been among Asia’s worst-performing currencies since  hostilities began in the Gulf… Economists are concerned over the  war’s impact on India’s balance of payments, already under  pressure from foreign investors selling Indian stocks at the fastest  pace on record… As the Gulf crisis drags on, economists are  revising down their estimates for growth in India.’ Kazakhstan In contrast, Kazakhstan has since the start of the Iran war  experienced an appreciation in its currency, the tenge. Oil-rich,  the country has benefitted from the steep upward revision in  crude prices, leading to the strengthening of the currency. This  trend is likely to continue until international trade in oil  stabilises. The oil sector accounts for over 40% of the Kazakh  government’s revenues. Kazakhstan, though, is dependent on electricity from Russia. It  aims to exit from dependence on Russian imports by 2027, the  Times of Central Asia reported, following a restatement of the  goal by the country’s deputy energy minister, Sungat  Yessimkhanov. Rising global crude prices have strengthened Kazakhstan’s energy sector, even as the country faces domestic electricity challenges. Photo: Kazakhstan government website It is likely to fulfil that objective only if homes remain heated and  industry avoids shortages during peak demand. Kazakhstan has  had a power deficit because of years of underinvestment, rising  demand, ageing thermal plants and uneven regional output,  according to the same newspaper.Uzbekistan Another Central Asian state, Uzbekistan, posted healthy activity  in its car industry, selling 121,601 vehicles between January and  April of this year, as per figures released by UzAvtosanoat and  reported by UZ Daily. UzAuto Motors, the largest automaker in Uzbekistan,  maintained its dominant position, selling 58,168 vehicles. The  company manufactures a wide range of models under various  brands, including American General Motors’ Chevrolet. Chinese  brands and Kia of South Korea are also noticeable in the  Uzbekistan market.  Indonesia The energy crunch has affected oil-producing Indonesia because  its demand outpaces its crude output, so it is planning to expand  its nuclear power capacity. Significantly, director-general Alexey  Likhachev of Russia’s state nuclear energy corporation Rosatom  was in Jakarta to meet the Indonesian president, Prabowo  Subianto, to discuss bilateral cooperation. Indonesia is exploring expanded nuclear energy  cooperation as Asian governments search for long-term energy security solutions. Photo: SouthEast Asian Gallery Bernama reported Likhachev as saying Rosatom was ready to  offer Indonesia ‘a comprehensive approach to developing its  national nuclear programme, including both large-scale nuclear  power projects and small modular reactors and floating power  units’. Malaysia In neighbouring Malaysia, economic growth for the first quarter  of the 2026 financial year was 5.4%, exceeding the prediction of  5.3%. The number had moderated from the 6.3% enlargement in  the previous quarter. The Star quoted the chief statistician of Bank Negara Malaysia,  Datuk Seri Mohd Uzir Mahidin, as saying ‘Malaysia’s economy  continued to expand in the first quarter of 2026, reflecting the  underlying resilience and stable growth conditions amid a  challenging global environment.’ The country continued to record a surplus in its current account  balance for the same period amounting to RM15.2 billion,  equivalent to 3% of gross domestic product (GDP). This was  significantly higher than RM2.7 billion in Q4 of 2025. Mahidin  said this was attributed to, as The Star put it, ‘sustained external  demand for Malaysia’s exports alongside improving services  sector performance’. Singapore In the Chandler Good Government Index, Singapore retained its  top position for a fourth consecutive year. The seven pillars of  evaluation are: leadership and foresight, robust laws and policies,  strong institutions, financial stewardship, attractive marketplace,  global influence and reputation and helping people rise.  Singapore was ranked first in all categories except robust laws  and policies and global influence and reputation.However, as Singapore Business spelled out, Singapore Airlines  (SIA) suffered a 57% year-on-year slump in net profit to $1.18  billion in the financial year ending 31 March last, because of its  shareholding in loss-making Air India. SIA suspended services to Dubai and Jeddah in February as a  result of the war in the Gulf and deferred the introduction of  flights to Riyadh until September 2026. The suspension of flights  to Dubai has been extended to 2 August. South Korea Samsung, South Korea’s giant electronics firm, faced a general  strike from 21 May. The strike threatened losses running into the  tens of trillions of won, not to mention semiconductor  production chaos and supply chain instability, Business Korea  reported. After the failure of labour-management negotiations,  Koo Yun-cheol, deputy prime minister and minister of economy  and finance, wrote on X: ‘We will continue supporting resolution  through principled negotiations under any circumstances.’ From aviation to semiconductor manufacturing, major  Asian corporations are facing mounting uncertainty from  supply chain and energy disruptions. Japan A group of lawmakers in Japan’s ruling Liberal Democratic Party  submitted a proposal to Prime Minister Sanae Takaichi to review  the country’s Companies Act, which would require shareholders  to own at least 30,000 shares in an enterprise to call extraordinary meetings or enter items on the agenda. At present,  a 10,000 shareholding is sufficient for the purpose. The Japan Times wrote the change ‘would bring the Japanese  market more in line with standards in other countries, where it is  normally more difficult for shareholders to directly participate in  governance’. It is expected this will ‘make Japan into a leading  financial centre’.

Can Asia hope to star at the football World Cup?

With World Cup football finals taking place in June and July in Canada, the United States and Mexico we asked football writer John Duerden what the chances are for the Asian teams taking part.