Iran, Cambodia, the Strait of Hormuz, and a Tuk-Tuk Driver Named Hun Borin: A Global Ripple Effect

Iran, Cambodia, the Strait of Hormuz, and a tuk-tuk driver named Hun Borin have, a priori, nothing in common. And yet, this Phnom Penh family man is today one of the countless collateral victims of the war ravaging the Middle East.

Queue in a Gas Station @Gargiulo

This conflict, triggered on February 28, 2026, by American-Israeli strikes against Iran, has done far more than destabilize a region. By effectively blocking the Strait of Hormuz—through which about 20% of the world's oil and 25% of liquefied natural gas transit—it has unleashed a global energy shockwave that hits millions of modest households in Southeast Asia head-on. In Cambodia, a country 100% dependent on fuel imports, it is the tuk-tuk drivers, the true lifeblood of the cities, who pay the heaviest price.

Iran, Oil Prices, and Southeast Asia: A Cascade Shock

To understand the plight of tuk-tuk drivers, one must go back to the virtual closure of the Strait of Hormuz. After the February 28 strikes and Iran's retaliation, oil tankers were targeted by mines and attacks, causing prices to skyrocket. Brent rose to $82 per barrel as early as March 2, a 15% increase in 48 hours. Yet, nearly 90% of the oil and gas that normally pass through this strait are destined for Asian countries, including Cambodia. Southeast Asia as a whole imports 60% to 80% of its oil needs from the Gulf, and several countries have only 20 to 30 days of reserves.

The Khmer kingdom, which doesn't have a drop of crude oil, buys all its fuels via Singapore's refineries and the port of Sihanoukville. From the start of the conflict, pump prices exploded: regular gasoline went from 3,850 riels per liter to 4,400 riels in just a few days, while diesel jumped to 5,150 riels.

By late March, the trend worsened, with a liter of gasoline reaching 5,200 riels and diesel 6,050 riels. Meanwhile, about 30% of the country's gas stations had to close temporarily due to lack of deliveries. The government has indeed reduced some fuel taxes and called for energy savings in the administration, but these measures struggle to stem the crisis.

Tuk-Tuks, Silent Victims of Geopolitics

In Phnom Penh, nearly 20,000 tuk-tuk drivers handle most public transport, due to a lack of sufficient metro or buses. Nine out of ten tuk-tuks run on liquefied petroleum gas (LPG), whose price has risen 70% since the start of hostilities. "The price of LPG has gone from 2,000 riels per kilo to 2,800 riels, and gasoline is hovering around 5,200 riels per liter," confirms Vorn Pao, president of the Independent Democracy of Informal Economy association.

For Mon Yort, a 43-year-old driver, the income drop is immediate.

"Before, I earned about $25 a day and spent $3.75 on LPG. Today, I only bring in $20, and I have to shell out $7.50 for the same amount of gas," he explains, throat tight, while queuing in front of a capital gas station."We live day to day. With the gas hike, nothing is left for the family."

Another driver, Eng Chandorn, 50 years old, suffers the same erosion. "My daily income has fallen from $20 to $15, but the LPG price has nearly doubled. Before the conflict, I paid $3.50 a day; now, I spend $6," he testifies.

Hun Borin, met at the cheapest gas station in Phnom Penh, is even more distraught. "Some days, my entire salary goes to fuel. When I get home, I have only the equivalent of $7 left. And that's only enough for me. My wife and children have nothing," he lets out, bitter.

Domino Effect on Tourism and the Economy

Tourism, a pillar of the Cambodian economy with nearly 5.6 million international visitors in 2025, is not spared the contagion. The fuel hike has sent airfares soaring, especially on long-haul routes via Gulf hubs (Dubai, Abu Dhabi, Doha), now disrupted. Result: European and American tourists, already rarer, are canceling or shortening their stays. "Angkor temples and Sihanoukville beaches are becoming more expensive and harder to reach," confirms an analysis by Courrier international.

Thong Mengdavid, deputy director of the China-ASEAN Studies Center at the Cambodian University of Technology and Science, sums up the relentless mechanism:

"The rise in fuel prices increases transport and production costs, fueling inflation and reducing purchasing power, especially on food products. The most affected are low- and middle-income households, informal workers, and transport providers."

Fewer tourists means fewer tuk-tuk rides, thus less income for drivers already on the brink. "Customers have also cut back on non-essential trips," laments Mon Yort. The loop is closed: a war 7,000 km away now determines whether a driver can feed his children or repay the loan for his vehicle.

"A Calamity for Southeast Asia's Poorest"

Economist Jayant Menon of Singapore's ISEAS-Yusof Ishak Institute warns: "At the macroeconomic level, the general price increase hits the poor harder than others.This is called 'inflation, a tax on the poor.' And due to governments' limited capacity to cushion shocks, the region's least developed countries—Cambodia, Laos, Myanmar, East Timor—are the most vulnerable."

Vorn Pao agrees: "Their incomes no longer match the cost of living. They have to pay for food, children's schooling, and repay debts. Many could slip into poverty. With the Khmer New Year approaching (mid-April), some won't even have the means to return to their home villages."

Solutions for Drivers?

In the face of the emergency, the government has taken some measures: reduction of import duties on fuels, then cuts in taxes on electric vehicles to encourage the energy transition. But for the drivers interviewed, these announcements remain theoretical. "I haven't seen a single ministry act concretely," repeats Hun Borin.

Thong Mengdavid calls for targeted support:"It would be necessary to prioritize aid to vulnerable groups, strengthen price controls, and accelerate structural reforms like energy diversification and improved public transport."

Other voices call for international solidarity. The Cambodia Tourism Association fears that if fuel prices remain high, tourism costs will rise, eventually impacting visitors—and thus drivers. An infernal spiral that no one had anticipated when the first bombs fell on Iran.