One of the biggest takeaways in global energy markets this week is the growing fragmentation. Brent crude in Asia has surged to over $150 a barrel, with demand destruction already emerging, and China and India facing the greatest pressure given their heavy reliance on Gulf crude. Meanwhile, the Trump administration has moved to release barrels from the Strategic Petroleum Reserve to help cap WTI prices below triple digits, with US crude currently trading around $94 a barrel.

And now we have three oil markets: Asia (Oman oil at $167), Brent ($113) and US (WTI $97)https://t.co/uHmMD24E9Gpic.twitter.com/41a4BhKOIA

The Iran-driven energy shock is hitting Asia the hardest so far because much of its crude and LNG is imported and shipped through the Strait of Hormuz.

Current status of the Hormuz chokepoint...

"The countries that are exposed to that supply disruption are not so much in Europe, or in the Americas, they're actually really in the Asia region," Michael Williamson of the United Nations Economic and Social Commission for Asia and the Pacific told AP News.

The energy shock across Asia has had cascading effects on economic activity throughout the region. One behavioral shift among those who can afford to move away from petrol-powered vehicles has been a surge in activity at Chinese EV maker BYD Motors.

Bloombergreports that BYD dealerships in the Philippines have already logged a full month's worth of orders in just two weeks as consumers react to the energy price shock and the cost of filling up gas tanks.

Vietnam's VinFast automotive company has seen 4x showroom traffic and is selling about 80 EVs per week, about double 2025 levels, following the surge in energy prices. Across Thailand, New Zealand, and Southeast Asia, dealers report sales increases of 20% or more and even inventory shortages.

What's key here is that a rapid surge in gasoline and diesel prices across Asia has accelerated EV adoption in recent weeks, and if the crisis persists, adoption rates are only set to increase in the weeks and months ahead.

"Higher oil prices always help the transition to electric vehicles," said Albert Park, chief economist of the Asian Development Bank. "It creates economic incentives to accelerate the green transition."

Source: ZeroHedge News