It looks like Anthropic isn’t as radioactive to other defense contractors – for now, and on paper. 

In a sharply worded 43-page order issued Thursday, U.S. District Judge Rita F. Lin (Biden) of the Northern District of California granted Anthropic PBC’s motion for a preliminary injunction, blocking key punitive measures imposed by the Trump administration after the AI company publicly refused to lift safety restrictions on its Claude model.

Photo-Illustration: WIRED Staff; PHotograph: FABRICE COFFRINI/Getty Images

Lin minced no words on the supply-chain label – the core of the dispute:

“Nothing in the governing statute supports the Orwellian notion that an American company may be branded a potential adversary and saboteur of the U.S. for expressing disagreement with the government.”

Recall that Anthropic refused to change the user policy for its AI tool Claude to allow the government to use it for what Anthropic described as “mass surveillance” and “fully autonomous weapons.” After they were branded a Supply Chain Risk, they sued on March. 9, calling the government’s actions “unprecedented and unlawful.” 

Lin ruled that the broad measures “do not appear to be directed at the government’s stated national security interests” and instead “appear designed to punish Anthropic.” One amicus brief called the actions “attempted corporate murder”; the judge noted they “might not be murder, but the evidence shows that they would cripple Anthropic.”

The Injunction

Lin’s preliminary injunction bars enforcement of three Challenged Actions; Trump ordering the government to immediately stop using Anthropic tech, Hegseth prohibiting government contractors from ‘commercial activity’ with Anthropic, and the DoW’s formal designation of Anthropic as a “supply chain risk” to national security.

The order does not force the Pentagon to start using Anthropic again, nor does it interfere with a planned six-month phase-out for existing systems if done without the broader bans. A separate parallel challenge to one DoW letter (under 41 U.S.C. § 4713) is pending in the D.C. Circuit; that case remains unaffected.

At the March 24 hearing, DoW counsel conceded that portions of the Hegseth Directive had “absolutely no legal effect” on their own and that DoW did not intend to terminate unrelated commercial relationships – yet declined to stipulate to an injunction, citing ongoing “assessment.”

“While this case was necessary to protect Anthropic, our customers, and our partners, our focus remains on working productively with the government to ensure all Americans benefit from safe, reliable AI,” Anthropic said in a statement. 

The order is a preliminary injunction only; the case will proceed to full merits. But Judge Lin’s thorough factual record and legal analysis make clear that branding a domestic AI firm a national-security threat for publicly advocating safety guardrails crosses a bright constitutional line. The government retains full authority to choose its tools—just not to punish a company for speaking out about their limitations.

BYD and VinFast are rapidly expanding their presence in Southeast Asia, where electric vehicles are gaining traction and competition is intensifying, according to Nikkei. Both companies have emerged as the fastest-growing car brands in the region’s six largest markets in 2025, with sales rising about 95% for BYD and 90% for VinFast compared with the previous year.

VinFast sold more than 100,000 vehicles across countries including Indonesia, Vietnam, and Thailand, while BYD delivered roughly 70,000 units. Together, they account for around 7% of total vehicle sales in a regional market of approximately 2.4 million cars. Their rapid growth has contributed to a decline in market share for long-dominant Japanese automakers such as Toyota, Honda, and Mitsubishi.

Nikkei writes that  VinFast’s strategy emphasizes affordability and ecosystem development. The company has focused on lowering prices, building charging infrastructure, and investing in local manufacturing while also promoting adoption through electric taxi fleets and ride-hailing services. BYD, by contrast, is leveraging partnerships and a broader product lineup. It supplies vehicles to ride-hailing operators such as Grab and is expanding production capacity across Southeast Asia, while also offering plug-in hybrid models that appeal to consumers concerned about charging availability.

Southeast Asia has become a priority growth market for both companies due to its expanding middle class and relatively low penetration of electric vehicles. BYD has established manufacturing operations in Thailand and is developing additional facilities in Indonesia and Cambodia. VinFast is pursuing large-scale investments in Indonesia and India, including factories and infrastructure projects designed to support long-term growth. 

India has proven more difficult for both companies. Limited charging infrastructure, strong domestic competitors, and relatively low consumer adoption of electric vehicles have constrained sales. Pricing differences are also evident, with VinFast positioning itself more aggressively at the lower end of the market compared with BYD.

Technologically, BYD benefits from its established plug-in hybrid systems, which reduce range anxiety and make its vehicles more practical in markets where charging networks are still developing. VinFast initially focused entirely on battery electric vehicles but is now considering hybrid options to broaden its appeal.

The two companies also differ in financial strength. BYD remains profitable, supported by strong cash reserves and cost control, and is expected to continue growing earnings. VinFast, however, is operating at a significant loss as it invests heavily in global expansion, relying on financial backing from its parent company to sustain its strategy.

Both automakers are pushing aggressively into overseas markets as competition in their domestic markets increases. Their ability to sustain growth will depend on how effectively they balance expansion with financial stability and adapt to varying market conditions across regions.

Authored by Dorothy Li & Frank Fang via The Epoch Times (emphasis ours),

TAIPEI, Taiwan – A Taipei court on March 26 found a former presidential candidate guilty of corruption-related charges and sentenced him to 17 years in prison, a verdict that has attracted domestic media attention amid the ongoing political deadlock in Taiwan.

Ko Wen-je, former Taipei mayor who ran in Taiwan’s presidential race in 2024, leaves the Taipei District Court in Taipei on March 26, 2026. Song Pi-lung/The Epoch Times

Ko Wen-je, former mayor of Taipei, was convicted on four counts, including accepting bribes, embezzlement, and breach of trust, the Taipei District Court said in a press release.

In addition to the lengthy prison sentence, the court said that Ko would also be stripped of civil rights for six years.

Taiwan’s semi-official media outlet Central News Agency (CNA) described Ko as the first leader of a major opposition party in Taiwan’s history to be sentenced to prison.

Ko founded the Taiwan People’s Party (TPP) during his second term as Taipei mayor, and ran a high-profile campaign for the presidency in January 2024.

While 66-year-old Ko has the option to appeal, the verdict is likely to prevent him from running for president again in 2028. Under Taiwan’s election law, individuals sentenced to more than 10 years in prison cannot be registered as candidates for president or vice president.

Ko was indicted in December 2024. Prosecutors had sought more than 28 years’ imprisonment for Ko, accusing him of accepting roughly half a million dollars in bribes from a web of businesspeople and politicians related to a property redevelopment project in Taipei.

In a separate statement, the Taipei District Prosecutors’ Office said that it will promptly review the judgment upon receipt and, if necessary, file an appeal within the legal timeframe.

Ko has consistently denied any wrongdoing since his arrest in September 2024. At a press conference on Thursday, Ko dismissed the verdict, saying “it is not a trial in a country governed by the rule of law, but a political performance orchestrated under political manipulation.”

“I sought no personal gain, committed no corruption, and I have a clear conscience,” Ko said.

Ko’s defense lawyers told the briefing that they will discuss filing an appeal after receiving the judgment.

Ko Wen-je arrives at the Taipei District Court in Taipei on March 26, 2026. Song Pi-lung/The Epoch Times

Huang Kuo-chang, TPP’s current chairman, called the verdict “outrageous.”

“It’s not just regret—it’s anger. This is an outright political verdict based on trumped-up charges,” Huang told the press conference.

Huang, who has announced his bid for mayor of New Taipei City in November’s election, added that he will make a formal announcement on March 27 to mobilize his party members to hold a rally in Taipei on March 29.

On his Facebook page, Huang criticized the verdict, saying the fight for Ko’s innocence would continue.

“At this moment, ​we must pull ourselves together even more, because this road ahead is still very, very ‌long. ⁠As long as Ko does not give up, we will not give up,” Huang wrote from the courthouse, where he was accompanying Ko.

The ruling against Ko may further complicate Taiwan’s political environment. The ruling Democratic Progressive Party (DPP) and the opposition have been mired in a rare political crisis. The opposition, consisting of the Kuomintang (KMT) party and its much smaller ally, the TPP, has used its majority in the parliament to block or stymie key government proposals, including the budget.

In a show of solidarity, the KMT said on Facebook that it “deeply regrets” the court’s decision, warning that such a heavy ruling could deepen the public perception that the rule of law and democracy are being used as “a political tool.”

Meanwhile, the ruling DPP responded by asking Ko to “respect the judiciary and face the ruling with courage.”

“While we refrain from commenting on specific cases, we will also not accept accusations that lack a factual basis,” Taiwan’s national media outlet CNA cited the party as saying.

Ko was Taipei’s mayor from 2014 to 2022. In January 2024, he finished third in Taiwan’s presidential election as a TPP candidate, receiving about 26 percent of the vote.

Taiwan is set to hold general elections in November, during which voters will choose city mayors, city councilors, county chiefs, and county councilors.

Earlier this week we reported that global chip production was in peril as “Qatar Warns Helium Exports Set To Collapse.” Best known as the gas that makes party balloons float, helium is far more important as a key input in chipmaking, space rockets and medical imaging. The problem is that Qatar supplies a third of the world’s helium, and the Gulf nation had to halt production after Iranian strikes against the region’s energy producing infrastructure crippled its LNG production which is critical to make helium, leading Qatar’s state-owned gas company to warn helium exports would collapse. 

The sudden halt of the helium supply chain has forced AirGas, one of the largest distributors of packaged gases in the US, to curtail helium shipments after Qatar halted LNG production.

Airgas, an Air Liquide SA company, declared a force majeure event on March 17 at 12:01 a.m. Eastern time, according to letters dated last week that were reviewed by Bloomberg News. The company anticipates that it will provide some customers with up to half of their normal monthly helium deliveries, and it will add a $13.50 per hundred cubic feet surcharge.

As noted above, Helium has several critical uses, including in health care and manufacturing. Hospitals use helium to keep MRI machines running and to treat patients with certain respiratory diseases. The inert gas is also essential to the manufacture of high-end semiconductors, such as Nvidia Corp.’s AI accelerator chips. Any shortages of the material could squeeze an already strained supply chain. The semiconductor industry is working to keep up with the massive demand for components used in the data centers that are needed for the build-out of AI infrastructure.

Airgas is prioritizing health-care customers over other industries, according to a market update reviewed by Bloomberg that was produced by Vizient, which helps hospitals purchase supplies. Vizient declined to comment on Airgas specifically, but said that in general it’s not uncommon for suppliers to prioritize health-care customers during disruptions.

The good news it that medical imaging professionals in the US say that disruptions to the helium market are not affecting patient care.

The worse news is that AirGas’s decision would mean that chip giants like Taiwan’s TSMC will see significant delays in obtaining the critical compound should the Iran war persist, painfully snarling the already stretched AI chip supply chain, potentially leading to major production shortfalls. 

Authored by Chase Smith via The Epoch Times,

Sen. John Fetterman said Wednesday night that activist pressure within his own party is prolonging the partial Department of Homeland Security (DHS) shutdown, offering his observations from within the Democratic caucus for why the standoff has stretched into its sixth week.

Appearing on Fox News’ “Hannity” on March. 25, the Pennsylvania Democrat said ongoing protests against the Trump administration—such as the “No Kings” rallies nationwide—have left some senators unwilling to vote to restore DHS funding. He said they “might be afraid to reopen” the government because demonstrators are pushing demands that he said were never achievable.

Fetterman called the shutdown “fundamentally wrong,” adding that the dynamic is one he has opposed before.

The partial shutdown entered week six since most DHS funding lapsed on Feb. 13. The Transportation Security Administration (TSA), which operates under the DHS, has operated without pay throughout, generating lengthy airport delays.

“Here we are at the airport every week, I talked to countless TSA agents and they are all hurting,” he said. “They are angry. They are frustrated. They’re exhausted, too, what they’ve been put through.”

He said TSA workers should be in the Democrats’ “wheelhouse” because they are union government workers, but now the party was “refusing to give them a paycheck.”

“So it’s always wrong, regardless of the party doing it,” he said of shutting down the government. “You can see the kind of chaos that’s created across right now. [People are] selling their blood.”

He added that the timing compounds the problem, with spring break travel and World Cup preparations now underway.

“Do the right thing,” he said. “Put the country ahead of the party.” 

Fetterman has been the only Democrat to vote with Republicans throughout the current standoff. He cast that vote again on Wednesday, when Senate Majority Leader John Thune (R-S.D.) moved to advance a DHS funding bill that failed 54–46, short of the 60 votes needed to proceed. The Senate has now failed to pass DHS funding legislation four times.

Senate Democrats submitted a counteroffer to Republicans on Wednesday centered on reforms to Immigration and Customs Enforcement (ICE), the central sticking point in the talks.

The offer includes requirements for judicial warrants before agents enter private property; restrictions on enforcement near schools, hospitals, churches, and polling places; and a mandate that ICE agents identify themselves by name, agency, and badge number.

Senate Minority Leader Chuck Schumer (D-N.Y.) called the proposal a “reasonable, good faith” offer and accused Republicans of acting in bad faith after presenting a plan with no ICE reforms, despite verbally agreeing to some during weekend talks.

Republicans have pushed to separate ICE funding into the budget reconciliation process, which would allow it to advance with a simple majority. The White House has signaled openness to that approach. Democrats in the House have also tried and failed several times to get their Republican colleagues on board with their own proposals, which would fund all DHS agencies other than ICE and Customs and Border Protection.

Republicans also want any deal to include the SAVE America Act, which would require photo identification for voting and proof of citizenship for voter registration—a provision Democrats have pledged to block.

Democrats say they are not against photo identification for voting, but have concern with President Donald Trump’s attempt to attach additional provisions to the bill, including restrictions on mail-in voting and measures barring transgender athletes and transgender procedures for minors, something Fetterman agrees with his colleagues on and has said he will not support.

Last week, The Wall Street Journal reported that President Donald Trump “is seeking to lower the profile of his mass deportation effort, and has directed his top advisers to adopt a new approach on one of his central campaign promises.”

According to the report, Trump has had conversations with his top advisors and First Lady Melania Trump in which he’s indicated that he’s “become convinced that some of his administration’s deportation policies have gone too far, and voters don’t like the term ‘mass deportation.’”

The desire for an immigration reset is being driven in part by Trump’s White House chief of staff, Susie Wiles, who believes the president’s immigration team has turned one of his marquee issues into more of a challenging issue ahead of the midterms, the people said. As a result, the administration is attempting to change not only how it talks about the issue—but also what actual enforcement looks like on the ground.

The report also explains that White House border czar Tom Homan has been behind the shift, steering the agency back to basics — prioritizing “bread-and-butter arrests” and focusing on criminal aliens already in local custody and ready for transfer.

Now, another report from the New York Times, reveals that ICE arrests are averaging more than 1,100 per day this year — nearly double last spring’s pace of roughly 600 — and that “custodial” arrests are driving those numbers. It’s also not surprising that Republican-led states with strong federal-local cooperation generate far more of these transfers, while sanctuary jurisdictions generate far fewer.

Some of the biggest totals are coming out of places like Florida and San Antonio, where there were no headline-grabbing raids.

Meanwhile, Los Angeles and Chicago — cities that were hit with high-profile enforcement operations — have actually seen arrest numbers fall steeply in recent months. Sanctuary cities, however, are largely flat.

The loudest operations weren’t always the most productive, and the quietest ones were getting the job done.

The Miami field office — which covers Florida, Puerto Rico, and the U.S. Virgin Islands — logged nearly 10,000 arrests between mid-December and March 10, outpacing Dallas, Atlanta, and San Antonio. Florida has maintained high and steadily climbing arrest numbers all year without a marquee federal operation dominating the news cycle. The work just kept happening. San Antonio followed a similar pattern — consistent and effective.

Los Angeles and Chicago, both cities that saw aggressive, high-profile crackdowns last year, saw arrest numbers peak and then fall. Chicago’s field office, which covers six states, hit its ceiling during Operation Midway Blitz between September and December and still sits below the national per capita average.

Los Angeles and Denver both peaked last summer and have been trending downward since.

High-visibility raids make headlines, but the data points to what the real problem is: sanctuary policies that limit coordination with local police, along with rhetoric from Democrat leaders in those states and municipalities.

“About half of ICE immigration arrests nationwide in 2025 were from what the agency calls ‘custodial’ arrests, in which ICE takes someone who is already in custody from another law enforcement agency,” the report explained.

“These arrests were much more common in states led by Republicans, where law enforcement is more likely to cooperate closely with federal immigration authorities.” Arrests were “less common in places where ‘sanctuary’ policies limited local law enforcement from cooperating with ICE and handing over people who have been arrested in connection with other crimes, but may or may not have been convicted.”

That need for coordination also helps explain why operations on the ground can become more volatile when cooperation breaks down. The consequences of these sanctuary policies, and the rhetoric of Democratic leaders, have been deadly. Two anti-ICE protesters in Minneapolis were killed in January while engaging with immigration agents. Renee Good was shot and killed when she attempted to run over an agent with her car during an ICE operation. Alex Pretti assaulted agents while carrying a loaded gun.

“We need state and local law enforcement cooperation, so we don’t have to have such a presence on the streets,” a Department of Homeland Security spokesperson said.

The Trump administration seems to have the answer it needs already to fix the perception problems related to immigration enforcement.

Authored by Jacki Thrapp via The Epoch Times (emphasis ours),

President Donald Trump plans to sign an order that will pay Transportation Security Administration (TSA) agents who have not received a check since the Department of Homeland Security (DHS) entered a partial shutdown in mid-February.

“I am going to sign an Order instructing the Secretary of Homeland Security, Markwayne Mullin, to immediately pay our TSA Agents in order to address this Emergency Situation, and to quickly stop the Democrat Chaos at the Airports,” Trump wrote in a Truth Social post on March 26.

More than 3,120 TSA agents, who haven’t been paid in weeks, called out on Wednesday, which prompted long lines to continue at airports across the country, according to a statement the DHS shared with The Epoch Times.

“It is not an easy thing to do, but I am going to do it!“ Trump added. ”I want to thank our hardworking TSA Agents and also, ICE, for the incredible help they have given us at the Airports.”

Trump has blamed the Democrats for keeping DHS shut down, while Democrats have pushed for changes to immigration enforcement operations as a condition for funding the department.

On March 25, Senate Democrats blocked funding for DHS in a 54–46 vote after Republicans rejected a counteroffer they put forward.

On the same day, Democrats separately offered a standalone bill that would immediately fund TSA, but not ICE and Customs and Border Protection. Republicans blocked the proposal.

This is a breaking story and will be updated.

“Get Woke, Go Broke” wins once again. 

For many years the political left in Hollywood along with the allied progressive media argued that wokeness was the dominant social trend of our era.  They claimed that any company that refused to adapt to the new far-left “modern audience” would be choking on the dust of companies that wrapped themselves in the rainbow flag.  They asserted that the entertainment industry had to change and reflect this new ideological movement if they wanted to remain relevant and profitable. 

In reality, it was all a lie.  The woke movement was a paper tiger, a sham, a con fabricated by a minority of insane activists and globalist NGOs.  There was no sea change in the modern audience.  Many companies were only convinced to play along because social media platforms like Twitter presented a false image of social trends.  With centrist and conservative views being suppressed by algorithms, most visible forum discussions were left leaning. 

Above all, open criticism of woke ideas was treated as akin to “hate speech” and censored as much as possible.  

For the ecosystem of corporate CEOs and marketing execs, the leftist saturation online was convincing.  But then again, the best way to measure the tangibility of a social movement is still money.  If woke is dominant, then woke should bring in consumers and it should make a profit.  There was no money.  There were no consumers.  There was no profit.

All the propaganda and social media manipulation in the world is not enough to compel average people to spend their precious time or cash on woke entertainment.  All anti-woke critics had to do was watch and wait as the dismal numbers rolled in for each new progressive project – It was objective, undeniable proof that woke is a gigantic fraud.

That said, there are still a handful of far-left media bombs rolling into theaters and streaming services because production giants refused to see the writing on the wall until the end of 2024.  Media endeavors that were greenlit at this time are just now being released to the public and the results are embarrassing.  Watching these movies and shows feels like time traveling back to 2018. 

As we covered in January, one such streaming series is Paramount’s new foray into the Star Trek franchise called “Starfleet Academy”.  The show definitely doesn’t “boldly go where no man has gone before”.  Rather, it goes where every other far-left vehicle has gone before, into the proverbial dumpster.  We noted that “audiences are not watching or buying, but Hollywood refuses to learn”.

Well, it looks like they just learned.

Paramount has announced that Starfleet Academy is now cancelled and the show will end after the release of the second season (which has already been filmed).  It might be shocking to hear, but gay polyamorous Klingons, lesbian space professors and fat sarcastic crew members with low-IQ Reddit-level vernacular just didn’t lure the fanbase to subscribe to Paramount+. 

New Star Trek series gets CANCELLED after 2 seasons amid ‘woke’ backlash.

Paramount will not renew ‘Star Trek: Starfleet Academy’ amid the series being branded ‘woke’ for featuring a gay Klingon in a skirt, a drag queen and a scene featuring DEI training.

The series received… pic.twitter.com/TCgEq7kO3b

— Oli London (@OliLondonTV) March 24, 2026

Season 1 never ranked on Nielsen’s Top 10 streaming viewership charts, unlike previous live-action Star Trek series. This has been highlighted as a key factor for the decision to cut Academy loose.  Sources reveal that the series failed to attract a significant audience despite its Gen Z focus.   

Production costs were a contributing factor and reports mention high budgets (rumored over $10 million per episode or around $100 million per season).  This makes it harder to justify a season renewal. Paramount has been undergoing leadership changes after their Skydance acquisition, with new owners reportedly reviewing projects for cost efficiency.

The series showrunner, Alex Kurtzman, has created one horrific disaster after another when it comes to his handling of the Start Trek franchise.  His argument, which he has made consistently, is that science fiction should not be about the future; it should act as a reflection of present day ideologies.  In other words, he is incapable of imagining a future without woke cultism as the dominant social system in the universe.  

It is likely that, with Paramount’s new direction and impending acquisition of Warner Bros., Kurtzman’s days working with the company are numbered. 

Many critics thought it wasn’t possible, but Starfleet Academy might have topped Disney’s Star Wars “Acolyte” series as the biggest woke implosion of all time.  The show’s collapse, though, is actually a sign of healing.  If there is no audience for these kinds of projects, then this just confirms that the woke movement is as dead as many predicted.  And with this death, intelligent people and sane people can move in to finally take the place of the crazies who ran the industry into the ground.  

Authored by Savannah Hulsey Pointer via The Epoch Times (emphasis ours),

Only females will be allowed in women’s events at the Olympics, according to the International Olympic Committee (IOC).

People take part in a rally outside the U.S. Supreme Court as justices hear arguments in two cases in which states have banned males from participating in female-only sports, in Washington on Jan. 13, 2025. Madalina Kilroy/The Epoch Times

The March 26 decision by the committee excludes transgender-identifying individuals who were born male who may have sought to compete in the international events. 

“Eligibility for any female category event at the Olympic Games or any other IOC event, including individual and team sports, is now limited to biological females,” the International Olympic Committee said.

Eligibility will be determined by a mandatory genetic test once in the athlete’s career.

The decision aligns with President Donald Trump’s executive order to retain the integrity of women’s sports, ahead of the U.S.-hosted 2028 games in Los Angeles. 

The IOC said the policy, which will apply to the 2028 games, “protects fairness, safety and integrity in the female category.”

“It is not retroactive and does not apply to any grassroots or recreational sports programs,” the organization said. 

Competitors such as two-time Olympic champion runner Caster Semenya, who has a medical condition involving sexual development, would also be restricted according to the new rules, which were published in a 10-page policy document by the committee. 

In the document, the Olympic governing group outlined the physical advantages males experience, as experts said those advantages are retained, even after transition.

“Males experience three significant testosterone peaks: In utero, in mini-puberty of infancy, and beginning in adolescent puberty through adulthood,” the document said.

According to experts, this offers those born male “individual sex-based performance advantages in sports and events that rely on strength, power, and/or endurance.”

Days before the decision was handed down, the Sport & Rights Alliance (SRA), ILGA World, Humans of Sport, and over 100 other allied organizations released a joint statement, asking the International Olympic Committee to abandon any mandate for genetic testing to determine eligibility for Olympic events.

“A sex testing and blanket ban policy would be a catastrophic erosion of women’s rights and safety,” said Andrea Florence, Executive Director of the Sport & Rights Alliance.

No male-born transgender athletes competed in the 2024 Paris Summer Games.

However, transgender-identifying weightlifter Laurel Hubbard competed in the 2021 Tokyo Olympics on the New Zealand women’s team without medaling.

On March 12, Trump received loud applause when he spoke about his effort to prevent men from participating in women’s sports during a Women’s History Month event.

The president said he hopes to ban “the sexual mutilation of minor youth,” in reference to transgender surgery procedures performed on children.

“We have put the world on notice that America will not allow men to compete against women in the 2028 Olympics,” Trump said.

The Associated Press contributed to this report.

As we outlined in our recent analysis on Australia’s dangerous vulnerability to disruptions in the Strait of Hormuz, most of Asia is heavily exposed and faces an unprecedented energy crisis should the war in Iran continue to prevent safe passage of oil and natural gas from the Gulf.  As Australia debates the potential for a national emergency, the Philippines has already declared one.

This week, Philippine President Ferdinand Marcos Jr. signed Executive Order No. 110, declaring a state of national emergency as a targeted measure focused on the energy sector in response to disruptions from the ongoing US-Israel war with Iran.  Approximately 98% of all oil bound for the Philippines passes through the Strait of Hormuz.

The emergency declaration allows the Philippine government to exert control over fuel prices and fast-track imports from alternative suppliers, such as Russia. Philippine authorities say they have enough fuel to last about 45 days at typical consumption levels.  

Energy rationing programs are being instituted across Asia and questions are rising about a possible domino effect on global markets.  The Philippines announcement comes a day after South Korea launched a nationwide energy-saving campaign, calling on people to ride bicycles for short trips and reduce the length of showers. Japan, meanwhile, said Wednesday that it would soon begin releasing oil from its emergency reserve, equivalent to a 30-day supply. Thailand and Vietnam have also asked citizens to take steps to curtail energy use.

China’s exposure to Iran and the Hormuz situation could be detrimental.  Over 35% of their energy supplies pass through the Strait and 15% of their oil comes directly from Iranian wells.  That said, China also has a large oil buffer, with enough emergency supply to last around four months.  

The emergency declaration in the Philippines is initially set to last one year and serves as a tool to provide the government with more legal flexibility to respond to the crisis.  Executive Order 110 enables the government to:

Fast-track procurement and imports of fuel and petroleum products from alternative suppliers. Exert control over fuel prices if needed to prevent excessive hikes or profiteering. Ensure orderly distribution of fuel, food, medicines, and other basic goods. Form a contingency committee for coordinated response. Authorize advance payments on contracts if required for timely supply. Activate a “whole-of-government” framework, including support packages for livelihoods, industry, food, and transport.  

The last time the world faced a similar threat of energy shortages was the Arab Oil Embargo of 1973 following the Yom Kippur War.  It was this event, coupled with a massive devaluation of the US dollar, that triggered a stagflationary malaise that lasted until 1981.  It was also the event that led to the US diversifying its energy resources to avoid future dependency on OPEC.  Only 7% of all oil bound for the US travels through the Hormuz.  

Asian nations, however, have less access to alternatives, which is setting up the region for a historic breakdown in productivity if the flow of oil and natural gas is not restored within the next couple of months.