As the Strait of Hormuz was effectively sealed off in the wake of the Iran war, the world has entered an "energy emergency mode." Unable to bear the surging oil prices, governments rolled out drastic measures that change daily life itself, from fuel rationing and free public transportation to a four-day workweek.
On the 30th (local time) at the New York Mercantile Exchange, West Texas Intermediate (WTI) settled at $102.88 per Barrel. It is the first time in 3 years and 8 months since July 2022 that the closing price topped $100 per Barrel. Fear that the paralysis of the Strait of Hormuz, which handles about 20% of the world's oil and gas shipments, will drag on has gripped the market.
Countries are pulling out policies that go beyond simple price support to curb consumption itself. The most notable shift is movement restrictions. According to the BBC, Australia's Victoria and Tasmania temporarily made public transportation free to reduce car use. Ireland set up an emergency budget of €235 million (about 413.5 billion won) and offered tax breaks, including exempting the heating oil levy.
Responses in Asian and African countries are even more compulsory. Thailand ordered all government offices to work from home and mandated keeping air conditioners at 26–27 degrees. The BBC said guidance also went out to civil servants to "take off jackets and work in light attire." Egypt limited store and restaurant hours to 9 p.m. and dimmed streetlights. The Philippines declared a national state of emergency and introduced a four-day workweek for civil servants.
In some countries where the situation is urgent, the "fuel rationing" of the 1970s oil shock has returned. Slovenia, a member of the European Union (EU), capped daily fuel purchases for private vehicles at 50 liters. Sri Lanka set daytime fueling limits at 15 liters for regular passenger cars and 5 liters for motorcycles. Myanmar enforced "odd-even" driving based on the last digit of license plates and is operating a digital rationing system that tracks fuel purchases with QR codes. Bangladesh and South Sudan began rolling blackouts by region due to fuel shortages for power generation.
Experts say this energy crisis will reshape the global economic structure beyond a short-term shock. An energy market specialist said, "It is highly unusual for countries to implement consumption-suppression measures simultaneously," adding, "We are already beyond the 'emergency response' phase and moving into a posture preparing for a prolonged standoff."