Oil prices have soared while sharemarkets have skidded on fears that the escalating war on Iran will squeeze energy supplies and hamstring industries around the world.

The following are actions that Asian governments are taking or plan to take to reduce the impact of the war on their economies.

South Korea plans fuel cap

South Korean President Lee Jae Myung said authorities would cap domestic fuel prices for the first time in nearly 30 years. The country will also look for sources of energy beyond supplies shipped via the Strait of Hormuz, and a 100 trillion won ($95.6 billion) market-stabilisation program should be expanded if needed, he added.

Indonesia to increase fuel subsidies

Indonesia will increase the amount it has allocated for fuel subsidies in its state budget, its finance minister said.

The country has budgeted 381.3 trillion rupiah ($32 billion) for energy subsidies and to compensate state firm Pertamina and utility company PLN for their efforts to keep some fuel prices and electricity tariffs at an affordable level.

China asks refiners to suspend fuel exports

China has asked refiners to halt signing new contracts to export fuel and to try to cancel shipments already committed, sources with knowledge of the matter said last week.

The guidance did not apply to jet fuel refuelling for international flights, bonded bunkering or supplies to Hong Kong or Macau, they said.

Japan tells national oil reserve site to prepare for release

The Japanese government instructed a national oil reserve storage site to prepare for a possible release of crude, Akira Nagatsuma, a member of the Centrist Reform Alliance opposition party said.

Details such as the timing of the release remained unclear, Nagatsuma said.

Bangladesh to close all universities

Bangladesh is closing all universities from Monday, bringing forward the Eid al-Fitr holidays as part of emergency measures to conserve electricity and fuel.

Vietnam to remove fuel import tariffs

Vietnam is planning to remove import tariffs on fuels to ensure supplies amid disruptions, the government said, adding that the measure is expected to last until the end of April.

Reuters