Iran war and Hormuz shock fuels cost-of-living crisis across South Asia

Iran war and Hormuz shock fuels cost-of-living crisis across South Asia Submitted by Tauseef Ahmad on Wed, 03/11/2026 - 15:00 India, Pakistan, Bangladesh, Nepal and Sri Lanka all suffering from spike in energy and fuel costs Indians queuing for fuel, March 2026 (Junaid Bhat/MEE) Off When tensions erupted around the Strait of Hormuz in early March, the impact was felt far beyond the Gulf’s narrow shipping lanes. Within days, the shock from the world’s most important energy chokehold rippled across South Asia, from petrol pumps in Karachi to vegetable markets in Dhaka and taxi stands in Mumbai. With oil prices surging as the US - Israeli war on Iran escalated, governments across the region scrambled to contain rising fuel costs while millions of households began bracing for higher transport fares, food prices and electricity bills.