Why is Asia at the center of the 'third oil shock' according to former IEA head Nobuo Tanaka?

Asia is at the center of the third oil shock because it is highly dependent on Middle Eastern oil—about 60% of its crude imports come from the region, totaling 14.74 million barrels per day; the closure of the Strait of Hormuz has cut off 15 million barrels per day of output, a shortfall that Tanaka states 'cannot be replaced', and Iraq’s production has collapsed from over 4 million to just 1.4 million barrels per day, with exports plunging over 90% in April.

What does Nobuo Tanaka identify as the fundamental solution to overcoming this oil shock?

Tanaka identifies electrification as the fundamental way out of the crisis, driven by rising global demand for electric vehicles, solar power, artificial intelligence, and data centers—which together are accelerating the transition to a power-based energy era.

Former IEA Head Warns Asia at Center of Third Oil Shock

Jun 15, 2026

Former IEA Executive Director Nobuo Tanaka warns Asia faces a third oil shock due to Strait of Hormuz closure risks, urging accelerated electrification via EVs and renewables as the solution.

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