Beyond Hormuz Asia Chart of the Week

Research evidence excerpt

Beyond Hormuz Asia Chart of the Week

10 July 2026

Asia Chart of the Week EconomicsAsia

Beyond Hormuz

So, it’s all over. Well, perhaps not quite: oil prices, after dropping close to pre-war

lows, have bounced again in recent days after conflict in the Gulf re-escalated. Still,

crude markets feel much more settled than in the weeks after missiles and drones

first started flying. That’s good news for inflation and growth: all else equal, lower

energy prices, however choppy, are a boon for Asia’s economies and the world

at large. It’s not quite back to normal, though: the closure of the Strait of Hormuz,

and the consequent energy shock, have sent shivers through Asia, a region more

dependent on its energy flow than any other. That means big changes are afoot:

public officials and business executives are now working hard to build resilience

and cut the dependence on energy that comes from the Gulf. In part, this means Frederic Neumann

Asian buyers are searching for other suppliers. But, more consequentially, this Chief Asia Economist, Co-head Global Research Asia

The Hongkong and Shanghai Banking Corporation Limited

also means reducing the need for imported oil and gas in the first place, by drilling fredericneumann@hsbc.com.hk

more at home, using more bio-fuel blends, and, above all, accelerating the shift to +852 2822 4556

renewable energy. All this, moreover, has become an even more urgent task since Justin Feng

energy needs will only go up with climbing temperatures, the furious data centre Economist, Asia The Hongkong and Shanghai Banking Corporation Limited

build-out, and general economic expansion. Asia’s ‘big energy shift’ will power justin.feng@hsbc.com.hk

growth through investment in the coming years, make the region more resilient, +852 22887108