How does a war in the Persian Gulf cause blackouts in the Himalayas? Follow the chain: Iran conflict disrupts shipping through the Strait of Hormuz, global LNG prices spike, India cuts power generation, and Nepal - dependent on Indian electricity imports - plunges into darkness.
Welcome to the interconnected energy crisis facing South Asia in 2026.
Nepal is experiencing 4-6 hour daily blackouts in industrial zones, with some regions seeing power cuts extend to residential areas, according to Gas Outlook analysis. The Himalayan nation of 30 million people faces a looming winter energy emergency.
The crisis stems from three converging factors: the Iran war's impact on global LNG supply, India's dependence on gas-fired power generation, and Nepal's reliance on electricity imports from India.
Start with the Strait of Hormuz. About 21% of global petroleum and 25% of LNG passes through this 21-mile-wide waterway between Iran and Oman. Escalating conflict has disrupted shipping, sent insurance premiums soaring, and tightened global LNG supply.
Spot LNG prices in Asia jumped to $18 per million BTU in April 2026, up from $11 in January. For India, which imports 53% of its natural gas, this creates immediate pain.
India generates roughly 25% of electricity from natural gas, concentrated in states like and . When LNG prices spike, state distribution companies face a choice: pay exorbitant fuel costs or reduce generation. Many choose the latter.



