South Asia's two billion people feel economic strain from Iran war

September 18, 2026 at 03:33 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Nearly two billion people across India, Pakistan, Bangladesh and Nepal face rising energy and food costs as the war on Iran disrupts Gulf supply routes. The region depends heavily on Gulf oil and gas, with India importing about 85 percent of its crude oil. Poor households are bearing the brunt, with some Pakistani families seeing rents and electricity bills more than double.

Key Facts

India, Pakistan, Bangladesh and Nepal are home to nearly two billion people, about 23 percent of the world's population.
India imports about 85 percent of the crude oil it consumes and is the world's third-largest crude importer.
Pakistan's Sajida Jibran saw her rent rise from 15,000 Pakistani rupees ($54) to 25,000 rupees ($90) in the past month.
Nepal has no direct crude oil or LNG imports from the Gulf and relies on India for virtually all petroleum products.

Energy Dependence

India imports about 85 percent of the crude oil it consumes and is the world's third-largest crude importer. Before the war, Gulf producers including Iraq, Saudi Arabia, the UAE and Kuwait were among India's major suppliers, while Qatar was a leading source of liquefied natural gas. Pakistan is highly dependent on imported crude oil, petroleum products and LNG, with Saudi Arabia, the UAE and Kuwait as traditional oil suppliers and Qatar as its main long-term LNG provider. Bangladesh increasingly relies on imported LNG as domestic production struggles, with Qatar among its main suppliers. Nepal has no direct Gulf energy imports and depends on India for petrol, diesel, kerosene and LPG, making it indirectly exposed to Gulf disruptions.

Household Impact

Sajida Jibran, a 45-year-old housekeeper in Karachi, Pakistan, says her rent rose from 15,000 Pakistani rupees ($54) at the end of last year to 25,000 rupees ($90) this past month. Her electricity bill used to be around 1,500 rupees ($5.4) but now starts at 5,000 rupees ($18). Jibran says that since the war started, even vegetables have become so expensive that it is difficult to buy them. The poor and economically vulnerable are bearing the brunt of the crisis across South Asia.