Hormuz Energy Crisis Strengthens Case for Nuclear Power

The Hormuz energy crisis has triggered a sharp policy shift across importing nations, with internationalbanker.com reporting that the conflict in West Asia has pushed nuclear power back to the center of discussions on long-term energy stability. Surging prices and shipping disruptions through the Strait of Hormuz since late February 2026 have exposed the severe economic risks of depending on vulnerable fossil-fuel trade routes.

According to internationalbanker.com, the crisis has tested Southeast Asia’s energy security and affordability, exposing the limits of short-term responses. The International Energy Agency noted that prior to the conflict, approximately 60 percent of Southeast Asia’s crude oil imports and a third of its gas imports came from the Middle East, while Japan relied on the region for 94 percent of its crude oil imports. Bangladesh purchased liquefied natural gas at prices several times higher than normal, and the Philippines declared a national energy emergency. Indonesia, Malaysia, Thailand, and Vietnam also implemented emergency measures to reduce fuel consumption.

Joshua Kurlantzick, senior fellow for Southeast Asia and South Asia at the Council on Foreign Relations, explained that the crisis transformed an abstract regional vulnerability into an immediate emergency. Writing on June 23, 2026, Kurlantzick noted that the regional response materialized faster than expected from governments that had previously moved at an unhurried pace on the energy transition.

Nuclear power has emerged as a central component of this strategic response, alongside renewable energy and grid expansion. Fatih Birol, executive director of the International Energy Agency, acknowledged in late May 2026 that the world is experiencing the largest energy security crisis the world has ever faced, driving intensified efforts to turn toward domestically available resources. Nuclear plants provide a stable alternative to imported fossil fuels because their fuel requirements are small, uranium can be stockpiled for years, and electricity production remains largely insulated from maritime trade disruptions.

In Northeast Asia, csis.org reported that the Hormuz crisis is generating a tailwind for nuclear energy use in Japan, South Korea, and Taiwan. Japanese Prime Minister Sanae Takaichi instructed her economic minister on June 29, 2026, to formulate a comprehensive policy package by August to strengthen the resiliency of the nation’s energy system. This initiative is expected to prioritize the more proactive construction of new nuclear reactor units.

Public acceptance of nuclear energy in Japan has also grown. According to csis.org, the Seventh Strategic Energy Plan adopted in February 2025 reversed previous policies by targeting nuclear power to account for 20 percent of Japan’s electricity supply by 2040. Meeting this target requires rapid modernization, as 15 nuclear reactor units are currently in operation out of a technically operable fleet of 33, while up to five new units are needed to replace capacity reaching the end of a 60-year operational license by the 2040s. The Japanese government is reportedly close to proposing the construction of two to five new reactor units in the coming months.

South Korea and Taiwan have similarly adjusted their policies in response to high hydrocarbon import dependence. csis.org reported that South Korea announced plans in mid-March 2026 to raise nuclear power plant utilization to 80 percent, up from the high 60 percent range, while expediting maintenance to bring six reactors back online ahead of schedule. President Lee Jae Myung confirmed in January 2026 that South Korea will proceed with building two new large reactors under its 11th Basic Plan on Electricity Supply and Demand, which targets nuclear energy supplying nearly 32 percent of electricity by 2030 and 35 percent by 2038.

Policy Packages Due in August

The Japanese government faces an August 2026 deadline set by Prime Minister Sanae Takaichi to finalize its comprehensive energy resilience policy package. This upcoming framework is expected to formally propose the construction of between two and five new nuclear reactor units to secure domestic power generation against future maritime trade disruptions.

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