A month into the Middle East conflict, its ripple effects are felt across economies worldwide. The crisis was triggered on February 28, when the United States and Israel launched joint strikes on Iran, setting off a chain of events that has tightened Tehran’s grip over the strategically vital Strait of Hormuz. This narrow sea passage, linking the Persian Gulf with the Gulf of Oman and the Arabian Sea, remains one of the world’s most critical energy routes. At its narrowest, it spans just 29 nautical miles, with limited navigable channels for shipping.Carrying around 20 million barrels of oil daily, nearly a quarter of global seaborne trade, any disruption here has far-reaching consequences. As supplies come under strain, countries are scrambling to manage the fallout while cushioning consumers through a mix of policy responses. While some have raised fuel prices, others restructured taxes to protect consumers.

Vietnam

Vietnam consumers have breathed a sigh of relief as the country has lowered fuel prices. Faced with a sharp spike in fuel costs, Vietnam rolled out emergency measures to bring costs under control. Authorities have suspended environmental protection taxes on petrol, diesel and aviation fuel until mid-April, in a bid to steady the domestic market. The trade ministry described the step as “an urgent and effective solution to stabilize the petroleum market and ensure national energy security amidst the escalating conflict in the Strait of Hormuz, which is creating the ‘biggest energy bottleneck ever’.” The move has led to a steep fall in prices, with petrol dropping by roughly 26% and diesel by more than 15% after earlier surges.

Venezuela

In Venezuela, prolonged high temperatures have intensified pressure on an already strained power system, prompting the government to scale back activity. Interim president Delcy Rodriguez announced a week-long suspension of work across the public sector, including education, as part of an electricity-saving drive. “During this Holy Week, I want to announce that I have decreed days off on Monday, Tuesday, Wednesday, Thursday and Friday for the entire education sector,” she said, adding that the country had endured “45 days of high temperatures.” While essential services will remain operational, the step reflects ongoing challenges in managing electricity demand.

India

In India, the government has taken a range of steps to cushion consumers and companies from the ongoing energy supply crisis. With refining costs climbing sharply, the government reduced excise duty on petrol and diesel by Rs 10 per litre each, despite the impact on state revenues. At the same time, export duties were introduced on diesel and aviation turbine fuel to manage supply pressures. Officials insisted there is no shortage of petrol, diesel or LPG, dismissing claims of disruption as a “coordinated misinformation campaign.” Domestic LPG availability remains stable, with production increased and states asked to expand commercial distribution.