Asian energy markets adapt to Hormuz blockage without panic

The Strait of Hormuz blockage, which has disrupted a significant share of Middle East oil and LNG shipments, is prompting adjustments rather than a scramble across Asian energy markets. Indian state refiners have lifted domestic LPG output by nearly 20% to compensate for reduced imports through the strait, according to reporting from OilPrice.com. In Southeast Asia, governments are pressing ahead with new gas-fired power plant construction despite the same supply shock hitting LNG cargoes. The response in both cases points to inventories and domestic production capacity that can absorb a disruption of this scale without triggering the kind of price spikes seen in past Middle East supply shocks. That matters for how investors read energy names with Asian exposure: the muted reaction argues against pricing in a prolonged crisis premium. Separately, Iran has continued to insist on a diplomatic resolution after President Trump rejected a proposed peace plan for the strait, according to wire reports Thursday. The gap between Iran's diplomatic posture and Washington's rejection leaves the underlying blockage unresolved, even as regional energy buyers adapt around it.