Work From Home To Travel Curbs: How Countries Are Responding To Iran War Energy Crisis

Last Updated:April 25, 2026, 21:24 IST

Countries are turning to remote work, cooling curbs and subsidies to manage a global energy crisis sparked by the Iran conflict.

The ongoing war in the Middle East has triggered what the International Energy Agency (IEA) describes as the largest disruption in global oil supply in history, prompting governments around the world to roll out emergency measures aimed at reducing demand and shielding consumers from rising energy costs.

At the centre of the crisis is the Strait of Hormuz, a vital shipping route through which around 20% of global oil supply typically passes. Since the outbreak of conflict, flows through the strait have dropped to a fraction of normal levels, sharply constraining global energy supply.

The disruption has already had a significant impact on markets. Global oil supply fell by more than 10 million barrels per day in March, while crude prices surged above $100 per barrel. Prices for refined products such as diesel and jet fuel have climbed even faster, according to the IEA.

Describing the situation as unprecedented, IEA Executive Director Fatih Birol said the conflict is “creating a major energy crisis, including the largest supply disruption in the history of the global oil market," warning that without a swift resolution, economic and market impacts are likely to intensify further.

In response, governments are deploying a wide range of energy-saving and demand-reduction measures. Based on the IEA’s energy crisis policy tracker, countries are focusing on six key strategies:

1. Work and study from home

Remote working and online learning are being widely promoted to reduce transport fuel use. Indonesia has mandated work-from-home for public employees on Fridays, Myanmar on Wednesdays, while countries such as Pakistan and the Philippines have introduced shortened working weeks for government staff. Several nations, including Sri Lanka, Peru and Bangladesh, have also reduced in-person schooling or expanded remote education.

2. Limit cooling in buildings

To curb electricity consumption, countries including Thailand, Bangladesh and Cambodia have introduced limits on air conditioning in public offices, while Jordan has banned its use in government buildings entirely, particularly to manage peak demand in hot climates.

3. Promote public transportation

Governments are expanding incentives for public transit and low-emission travel. Lithuania has cut train fares by 50% for two months, the Philippines has introduced free bus services in selected cities, and France has expanded support schemes for electric vehicle access among low-income groups. Chile is assisting taxi drivers transitioning to electric vehicles, while Thailand and Argentina are increasing biofuel blends in gasoline.

4. Restrict government travel

Public sector mobility is being curtailed to reduce fuel consumption. South Korea has imposed driving limits for government workers, while Jordan and Pakistan have banned international travel for officials. Sri Lanka has also encouraged public transport use for government staff.

5. Mandate price caps and provide subsidies

Several countries are directly intervening in fuel markets. Croatia and Hungary have introduced fuel price caps, Czechia has limited retailer margins, China has capped domestic fuel prices, and Japan has implemented subsidy-backed price controls. While these measures provide relief, they also raise fiscal and market challenges.

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