Shrinking fuel stocks and soaring prices are leading countries around the world to burn coal, ration fuel, shorten work weeks and tell citizens to stay at home.<\/p>\n
Fossil fuel supplies have reduced since the war against Iran led to the closure of the strait of Hormuz, a crucial shipping route for oil and seaborne gas. The shortfall has prompted emergency measures as government\u2019s attempt to halt rising costs that have thrown economies into chaos.<\/p>\n
The International Energy Agency (IEA), whose members sought to calm markets by releasing 400m barrels of oil from their strategic reserves last month, has called for actions such as flying less and driving slower<\/a>.<\/p>\n Here is how the world is responding as the Iran war oil crisis deepens.<\/p>\n The United States<\/p>\n The US, which, with Israel, bombed Iran in late February, has threatened further blows to Iranian oil infrastructure that may prolong the war and raise fuel prices further<\/a>. On Tuesday, Donald Trump lashed out at allies who have not joined the campaign \u2013 including the UK and France \u2013 by telling them to first buy from the US and then \u201cgo get your own oil<\/a>\u201d from the Gulf.<\/p>\n The US administration has doubled down on oil investments as the Iran war sends prices soaring. Photograph: David McNew\/Getty Images<\/p>\n The federal government has not moved to increase subsidies or support households struggling to pay bills, but it has continued its \u201cdrill, baby, drill\u201d policy of expanding fossil fuel production while blocking renewable projects<\/a>. Last week, the Trump administration announced it would pay the French company TotalEnergies $1bn of taxpayer money to kill plans to construct windfarms<\/a> off the US east coast, and instead direct investments into oil and gas.<\/p>\n The UK, Australia, New Zealand and Canada<\/p>\n The UK has encouraged people to stay calm<\/a> as fuel prices rise, steering clear of calls to curb demand and limiting its action to financial support<\/a> for people who use oil to heat their homes. The chancellor, Rachel Reeves, is considering plans to put extra cash into a council-run fund<\/a> to help vulnerable people during financial crises, but has ruled out the universal support offered during the last energy crisis.<\/p>\n In Australia, fuel excise will be halved for three months, taking about 26 cents a litre off the price at the pump. Photograph: Joel Carrett\/AAP<\/p>\n The IEA has warned governments against providing blanket subsidies in response to the crisis and advised them to instead target support to those who need it most. New Zealand has announced weekly cash payments<\/a> to nearly 150,000 families \u201cin the squeezed middle\u201d as part of a fuel relief package.<\/p>\n Australia has introduced a 50% cut to the fuel excise<\/a> for three months and released a national fuel security plan. At its current danger level, it encourages motorists to \u201conly buy the fuel you need\u201d and says voluntary choices will help avoid the impact of higher prices. Canada, meanwhile, has refrained from intervening to offset rising prices.<\/p>\n The European Union<\/p>\n The EU has called for a faster shift to a clean economy \u2013 powered mainly by domestic renewables \u2013 even though some of its member states are slowing it down. Last week, Italy delayed its plan to phase out coal by more than a decade, while the German chancellor, Friedrich Merz, mooted keeping coal plants online for longer and called to hasten the construction of gas-fired power plants. Several EU governments have announced fuel subsidies and tax cuts to shield consumers from price spikes.<\/p>\n There has been a mixed response to the crisis in Europe. Photograph: mauritius images GmbH\/Alamy<\/p>\n On Wednesday, the European Commission proposed weakening its flagship carbon price by ending the automatic cancellation of extra permits in a buffer pool. It has also promised to mandate lower taxes on electricity than fossil fuels, which would reduce reliance on imports<\/a> by speeding the shift away from petrol cars and gas boilers.<\/p>\n Dan J\u00f8rgensen, the EU\u2019s energy commissioner, urged member states on Tuesday to save energy in line with IEA recommendations. Most countries have been reluctant to impose hard measures to cut demand, but Slovenia has begun rationing fuel at the pump and Lithuania has halved domestic train ticket prices for the next two months.<\/p>\n Asia<\/p>\n Coal is coming back<\/a> across Asia, which has been hit hardest by the energy crisis. India has ordered coal-fired power plants to be run at full capacity and avoid planned outages, while Japan is allowing less-efficient coal plants back on to the electricity market. South Korea has lifted caps on electricity from coal and announced a delay to its planned phaseout. Bangladesh, Thailand and the Philippines are also increasing electricity output from the dirtiest fossil fuel.<\/p>\n The government in Sri Lanka has introduced fuel-rationing and a four-day working week. Photograph: Thilina Kaluthotage\/Reuters<\/p>\n China, the world\u2019s second-largest economy, is less exposed to the crisis than its neighbours. In recent years, it has greatly increased energy production \u2013 from fossil, nuclear and renewable sources \u2013 and built up a vast strategic oil reserve. Its state-run refineries have avoided Iranian crude oil imports for fear of being cut off from international markets, but independent \u201cteapot<\/a>\u201d refineries have continued to process it for domestic consumption.<\/p>\n South and south-east Asian countries have taken the greatest steps to reduce energy demand. Sri Lanka has introduced fuel rationing and a four-day working week<\/a>. Vietnam has urged employers to let staff work from home. News anchors in Thailand took off their jackets on air<\/a>, as the government called on people to use less air conditioning and told officials to wear short-sleeved shirts without neckties. It has also reduced temperatures in government offices<\/a> to 26-27C and joined other countries in the region in calls to drive less, use more public transport and promote car-sharing.<\/p>\n Africa<\/p>\n Most African countries are net importers of refined oil products and the continent\u2019s high share of farmers means it is particularly vulnerable<\/a> to the surge in fertiliser prices, which have been hit by increased energy costs and shortfalls in exports from the Gulf.<\/p>\n Addis Ababa in Ethiopia, which is particularly vulnerable as it imports all its petrol, primarily from the Gulf. Photograph: Marco Simoncelli\/AFP\/Getty Images<\/p>\n