# Asian Governments Race to Shockproof Energy Supply as Hormuz Risk Deepens

The Philippines is building a cross-border grid link to Indonesia, and Saudi Arabia is pursuing a US nuclear pact, as shipowners doubt Hormuz can be made safe.

- Published: 2026-07-23T05:33:51.693Z
- Canonical: https://polylog.news/2026-07-23/asian-governments-race-to-shockproof-energy-supply-as-hormuz
- Publisher: Polylog (Global desk)
- Section: world
- Sources: [South China Morning Post](https://www.scmp.com/week-asia/economics/article/3361552/philippines-plugs-indonesian-power-link-shockproof-energy-supply), [The Japan Times](https://www.japantimes.co.jp/news/2026/07/23/world/politics/explainer-us-saudi-nuclear-pact/), [Financial Times](https://www.ft.com/content/1cbe4fd0-6b81-42c5-bc30-070fec3cd9dd)

With the Strait of Hormuz under attack, energy importers are moving to reduce their dependence on a single waterway. The South China Morning Post reported that the Philippines is pushing to build a cross-border power link with Indonesia to secure supply amid rising electricity costs, a step toward a long-delayed regional grid, [in its coverage](https://www.scmp.com/week-asia/economics/article/3361552/philippines-plugs-indonesian-power-link-shockproof-energy-supply). The urgency is a direct response to how fragile concentrated energy routes have become.

The effort extends to the Gulf itself. The Japan Times examined a proposed US-Saudi nuclear cooperation pact that has raised alarm in Washington and the region over proliferation and security, [in an explainer](https://www.japantimes.co.jp/news/2026/07/23/world/politics/explainer-us-saudi-nuclear-pact/). For Riyadh, domestic nuclear power is partly about protecting itself from the same conflict now disrupting its oil exports.

It is not clear whether the main waterway can be reopened by force. The Financial Times reported that the renewed American air campaign has yet to reassure shipowners that Hormuz can be made safe from Iranian attack, [in a military briefing](https://www.ft.com/content/1cbe4fd0-6b81-42c5-bc30-070fec3cd9dd). Until they are reassured, insurance and freight costs stay elevated regardless of headline oil prices.

## What this means

Each Gulf crisis pushes importers to build costly workarounds, and those investments do not reverse when the fighting stops. The exposed parties are energy-importing economies in Asia that pay twice, once in higher current prices and again in the capital cost of diversification. The beneficiaries are suppliers of grid interconnection, nuclear technology and alternative supply routes. The structural effect is a permanently higher risk premium embedded in any trade that depends on Hormuz, which raises the baseline cost of Gulf energy even in calm periods.

## What to watch

- Shipping insurance and tanker freight rates for the Gulf, because they show whether owners believe the waterway is becoming safer or more dangerous.
- Progress on the US-Saudi nuclear talks, since a deal would mark a structural shift in how Gulf states secure power and a proliferation concern for the region.