Japan, South Korea, Taiwan at Economic Risk as Middle Eastern Oil Disruptions Intensify

A China expert has warned that key Asian economies face significant economic strain due to ongoing disruptions in Middle Eastern oil supplies, while the United States remains positioned to withstand escalating tensions with Iran.

“Gordon Chang,” a noted analyst, cautioned that “it’s going to be difficult for Japan, South Korea, and Taiwan not to get hurt from this,” pointing to their heavy dependence on energy imports from the region.

Chang emphasized that the broader objective for U.S. partners remains dismantling Iran’s nuclear weapons program and limiting its ballistic missile capabilities—some of which have the potential to reach the United States.

“The United States can wait this out,” Chang said, noting that America has become a net exporter of energy and does not rely on oil shipments through the Strait of Hormuz.

To alleviate impacts on allies, Washington could increase exports of liquefied natural gas and crude oil. “The one thing we can do to alleviate problems for our friends is simply to sell them our LNG and crude oil,” Chang stated. “We have a lot of it.”

Chang also noted that China is in a far more vulnerable position due to its reliance on Middle Eastern oil imports.