Global Economies Implement Emergency Measures Amid Iran Energy Crisis

Governments worldwide are deploying diverse economic and energy strategies to protect households and industries from soaring costs triggered by the U.S.-Israeli war on Iran. To stabilize prices, Brazil, Greece, Italy, and Namibia have introduced fuel subsidies and tax cuts, while Australia and Japan released strategic reserves. In Asia, India, Indonesia, and Sri Lanka implemented fuel rationing and consumption curbs to manage limited supplies.

Several nations are shifting their energy mixes to maintain power grids. Japan and South Korea increased their reliance on coal-fired power, with Japan relaxing rules to facilitate this transition. Simultaneously, Indonesia and Vietnam accelerated the adoption of biodiesel and ethanol, including the implementation of Indonesia's B50 biodiesel programme.

Financial strain has forced several countries to seek external support or reduce spending. Bangladesh and Sri Lanka are pursuing billions in external financing, and Malaysia ordered federal budget cuts for 2026. In Europe, the European Commission coordinated gas storage refills and proposed electricity tax cuts. Polish Finance Minister Andrzej Domanski indicated that fuel price control measures might extend beyond May 15.