Trump’s war in Iran exposes US shift from global guardian to arbiter of chaos, as the conflict reshapes global energy flows, disrupts economies across Asia, and highlights widening inequalities in how nations absorb geopolitical shocks.
Across Asia, governments have been forced into emergency measures to shield citizens from the fallout of the conflict involving Iran. In India, authorities redirected liquefied gas supplies toward households, prioritising cooking fuel over industrial use.
This decision reflects how deeply energy shortages have begun to affect daily life, especially in countries where gas is a primary source of cooking energy. By diverting supply from the plastics industry, the Indian government aimed to prevent widespread hardship among vulnerable populations.
In Nepal, the government responded by rationing cooking gas amid fears of shortages, while Philippines authorities explored reducing the workweek to four days to conserve energy and lower electricity consumption.
Meanwhile, Bangladesh took more drastic steps by closing universities and limiting fuel sales, underscoring the severity of the crisis as institutions struggle to cope with reduced energy availability.
These disruptions have been largely driven by the closure of the Strait of Hormuz, one of the world’s most critical oil transit routes. The blockage has significantly curtailed the movement of oil and gas shipments that many Asian economies depend on.
Data indicates that around 80% of oil and oil products passing through the strait in 2025 were destined for Asian markets, highlighting the region’s vulnerability to disruptions in this narrow but vital waterway.
Since the escalation of conflict, maritime traffic through the strait has reportedly dropped by as much as 90%, creating a severe bottleneck in global energy supply chains and driving up costs.
Although Europe is less dependent on Middle Eastern fuel compared to Asia, it remains highly reliant on imported energy, particularly natural gas. Prices for gas across European markets have surged sharply since military actions involving the United States and Israel began in Iran.
The ripple effects have been felt across industries and households, with rising energy costs putting pressure on inflation, production, and overall economic stability in many countries.
Despite the widespread disruption, the economy of the United States has shown relative resilience. The S&P 500 index has declined by only about 5% since the onset of the conflict, a comparatively modest drop given the scale of global upheaval.
This resilience is largely attributed to the United States’ abundant domestic energy resources, particularly natural gas, which accounts for a significant portion of its energy consumption and reduces reliance on imports.
By producing much of its own energy, the US is better insulated from international price fluctuations, allowing it to weather external shocks more effectively than many other economies.
However, this relative stability has raised broader questions about the shifting role of the United States in the global order. Historically viewed as a stabilising force and promoter of a rules-based system, the country is increasingly being seen as contributing to global instability.
Critics argue that the current conflict demonstrates a departure from traditional leadership, with US actions perceived as exacerbating tensions rather than containing them.
The economic divergence between the United States and other regions further underscores this shift. While many countries face severe disruptions and difficult policy choices, the US appears comparatively shielded from the worst effects.
This imbalance has fuelled concerns that global economic systems are becoming more fragmented, with countries responding to crises in isolation rather than through coordinated international efforts.
For developing nations, the consequences are particularly severe. Limited financial resources and heavy dependence on imported energy leave them more exposed to price shocks and supply disruptions.
The situation has also highlighted the interconnected nature of modern economies, where conflicts in one region can quickly cascade into global crises affecting everything from fuel prices to food security.
Energy markets, in particular, have become a focal point of geopolitical competition, with control over supply routes and resources playing a critical role in shaping international relations.
The closure of the Strait of Hormuz serves as a stark reminder of how vulnerable global systems remain to disruptions in key chokepoints. Even temporary interruptions can have lasting economic consequences.
In this context, the actions of major powers carry significant weight, influencing not only immediate outcomes but also long-term perceptions of global leadership and responsibility.
The current crisis suggests a world in transition, where established norms and roles are being redefined amid shifting power dynamics and competing national interests.
While some analysts view the United States’ resilience as a sign of strength, others interpret it as evidence of an increasingly uneven global landscape, where the burdens of conflict are not shared equally.
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As the situation continues to evolve, policymakers and observers alike will be watching closely to see whether efforts emerge to restore stability and cooperation in global energy markets.
Ultimately, the developments surrounding the conflict with Iran reflect deeper structural changes in the international system, raising important questions about the future of global governance and economic interdependence.
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