Vietnam urges work from home amid fuel supply, price crunch in Mideast

Vietnam's trade ministry has urged businesses to promote work-from-home policies to reduce fuel consumption amid supply disruptions and price spikes caused by the U.S.-Israeli conflict with Iran. The government cited heavy reliance on Middle Eastern energy imports, with gasoline prices up 32%, diesel up 56%, and kerosene up 80% since late last month, according to Petrolimex, the country's largest fuel trader. Long queues at gas stations have been reported as supply tightens. The ministry's statement on Tuesday called for companies to minimize travel and transportation needs. This marks a rare government intervention in fuel usage, reflecting the severity of the crisis. The conflict has disrupted global oil flows, hitting import-dependent nations like Vietnam particularly hard.

Global Impact

Economically, Vietnam's fuel crisis underscores the vulnerability of energy-importing emerging markets to Middle East geopolitical shocks, potentially widening current account deficits and pressuring currencies. Politically, the government's intervention may set a precedent for other Asian nations facing similar supply risks, escalating into broader energy rationing.