Global Government Responses to the Iran War Energy & Fertilizer Crisis
Updated March 30, 2026 (Created by Claude AI)
THE BIG PICTURE
The IEA has characterized this as the “largest supply disruption in the history of the global oil market.” Wikipedia In conversations with more than three dozen oil and gas traders, executives, brokers, shippers and advisers, one message was repeated: the world still hasn’t grasped the severity of the situation. Many drew parallels with the 1970s oil shock. Bloomberg CFR warns that many Asian states could run out of oil within the next month. Council on Foreign Relations
A new wrinkle as of this morning: G7 energy and finance ministers, along with central bankers, the IEA, the IMF and the World Bank, are scheduled to hold a video call today to discuss the situation in the Middle East and its impact on energy and financial markets. Bloomberg
ASIA — SEVERE AND WORSENING
Philippines — Officials have switched to a four-day workweek to cut fuel consumption and reduce government energy use by a fifth. Offices have been told to switch off computers during lunch breaks and keep air conditioning no lower than 24°C. Council on Foreign Relations The Philippines is in talks with the U.S. about obtaining permission to purchase oil from sanctioned countries.
Sri Lanka — Reintroduced a QR code-based fuel authorization system requiring vehicle owners to register online before buying fuel. Cars are capped at 15 liters per week, motorcycles at 5 liters. A four-day work week is also in place for government and public education employees. Al Jazeera
Bangladesh — Closed universities, turned off light displays for Eid-al-Fitr celebrations, and stationed troops at oil depots to prevent hoarding, while turning to China and India for diesel imports. Time Initial fuel caps were briefly suspended for the Eid holidays but the broader crisis continues.
India — Invoked emergency powers to redirect liquefied petroleum gas supplies from industrial users to households. Time Prime Minister Modi told Parliament the country must prepare much as it did during COVID. Restaurants in Mumbai and Bengaluru are discussing shutting a few days a week to manage LPG shortages. Asia Media Centre
Japan — Confirmed on March 27 it is lifting caps on coal power generation, allowing older and less-efficient plants to operate at full capacity for up to a year starting in April. Fortune Japan has also begun its largest-ever release of emergency oil reserves.
South Korea — Removed its 80% operating cap on coal-fired generation Fortune and announced a record release of 22.46 million barrels from strategic reserves. Is also considering limiting exports of naphtha used in plastics manufacturing. CNN
Thailand — Restarting two coal plants that were decommissioned last year. Fortune Announced a temporary price cap on diesel and has banned oil exports (except to Cambodia and Laos). Al Jazeera Thailand and South Korea have both imposed limits on refined-fuel exports, further tightening regional supply. Fortune
China — Directed its top refiners to suspend exports of diesel, petrol, and jet fuel. China supplies 40% of Australia’s jet fuel; Vietnam, the Philippines and Bangladesh also rely on Chinese fuel. The collateral damage across the region has been significant. Fortune
Vietnam — Has urged people to work from home and asked refineries and fuel distributors to keep fuel supplies high. PBS Vietnam holds less than 20 days of oil reserves.
Pakistan — Introduced a four-day working week for government employees, with 50% of staff working from home on rotation. Al Jazeera
Myanmar — The ruling military junta introduced an “odds and evens” fuel rationing system. The UN reports oil shortages are disrupting transport, businesses, and humanitarian operations. The Diplomat
Indonesia — Faces an acute dilemma: if it ends subsidies, living costs spike and panic could follow. Its oil reserves stand at only about 20 days. PBS
Taiwan — President Lai Ching-te announced plans to restart two of the island’s shuttered nuclear reactors Fortune — a dramatic reversal given his party’s longstanding “nuclear-free homeland” platform.
Cambodia — Thailand’s export ban has contributed to shortages that have closed nearly a third of Cambodia’s roughly 6,000 gas stations. PBS
Australia — Mines are warning of suspensions due to dwindling diesel supplies. Grain growers are facing fuel delivery cutbacks ahead of the planting season. Fortune
EUROPE — ESCALATING FAST
Slovenia — First EU nation to ration fuel, imposing a limit of 50 liters per person per day and 200 liters per business per day. Breitbart
Spain — Unveiled a €5 billion support package including tax cuts and subsidies of up to €0.30 per liter of fuel, cutting electricity bills by 13%. Anadolu Ajansı
Germany — Considering price caps and windfall taxes on energy companies, with petrol prices up nearly 14% in three weeks. Anadolu Ajansı Despite diversifying away from Russian gas after 2022, Germany’s gaps in energy security have been exposed again. CSMonitor.com
Italy — Seeking additional gas supplies from Algeria and has reduced fuel levies by €0.25 per liter. Anadolu Ajansı
Hungary — Introduced price caps. Anadolu Ajansı
France — Exploring ways to increase output from its five oil refineries. Anadolu Ajansı
Portugal — Cut diesel taxes. Anadolu Ajansı
EU overall — EU gas storage is under 30% capacity — the lowest since 2022 — after a blistering winter. The EU will need to inject nearly 60 billion cubic meters of gas during refill season just to meet required targets. Time The European Central Bank postponed planned interest rate cuts, raised its 2026 inflation forecast, and cut GDP growth projections. UK inflation is expected to breach 5%. Wikipedia
AFRICA & MIDDLE EAST
Egypt — Prime Minister Mostafa Madbouly announced plans to ration fuel and electricity, saying the plan will be reviewed after a month and reversed if the crisis ends. Time
Kenya — Holds only 21 days of fuel stocks. The country’s biggest fuel suppliers are already rationing products, with rural areas running out. Time
THE FERTILIZER CRISIS — THE HIDDEN EMERGENCY
This has become a major story since last night’s roundup. The conflict has restricted about 30% of global urea trade. Washington Times Urea export prices from the Middle East have surged about 40%, from under $500 to over $700 per metric tonne — close to 60% higher than this time last year. The US is already close to 25% short of fertilizer supply for this time of year. Al Jazeera
About a third of all fertilizer shipped globally passes through the Strait of Hormuz. Critically, unlike oil, there are no strategic international fertilizer stockpiles. NPR
It is now the spring planting season, when farmers typically purchase fertilizers for the next harvest. If they cannot secure enough supply — or if prices are too high — crop yields could decline. The world’s least developed economies have the least capacity to absorb these shocks and will feel the effects most strongly. UN News
Country-specific fertilizer impacts:
Ethiopia gets over 90% of its nitrogen fertilizer from the Gulf through Djibouti. “The planting season is now. The fertilizer isn’t there.” National Observer
In India, the government has prioritized urea for domestic use, but some plants are still running below capacity due to natural gas shortages. National Observer
Brazil — which gets 85% of its fertilizer from imports — is especially vulnerable. Fortune
China, the world’s largest producer of nitrogen and phosphate fertilizers, is prioritizing domestic supply; urea shipments from China probably won’t resume until May. National Observer
Fertilizer makers in Malaysia are suspending new orders due to supply-chain disruptions. The Diplomat
The World Food Program’s deputy executive director put it bluntly: “In the worst case, this means lower yields and crop failures next season. In the best case, higher input costs will be included in food prices next year.” WSMV
COAL & NUCLEAR COMEBACK
A major new development: The crisis is forcing Asia to look backward and forward simultaneously. In the short term, governments are returning to coal. In the long term, the supply shock may accelerate nuclear restarts and EV adoption faster than years of climate policy ever managed. Fortune Taiwan is restarting shuttered reactors, Vietnam finalized a deal with Russia to build its first nuclear plant, and the Philippines is laying out a nuclear pathway by 2032.