Asia-Pacific governments are scrambling to shield households and industries from surging energy costs, as Brent crude, the international benchmark, climbed above $101 a barrel on Monday.

The situation worsened after the United States announced a naval blockade of the Strait of Hormuz on Sunday, and shipping through the strategic waterway subsequently ground to a halt, according to maritime news site Lloyd's List.

Across the region, policymakers are leaning on fuel subsidies, oil stockpiles and alternative energy sources to cushion the impact. Analysts caution, however, that a prolonged disruption could destabilize external balances, as expanded subsidies widen fiscal deficits.

The capacity to absorb the shock varies markedly, according to recent research noted by BMI, a Fitch Ratings subsidiary.

Japan, South Korea, Australia and Singapore retain "meaningful fiscal headroom" and credible monetary frameworks, BMI said.

By contrast, South Asian nations face sharper constraints. Pakistan remains bound by strict conditions under its International Monetary Fund bailout program, while Bangladesh and Sri Lanka carry similar external vulnerabilities.

Priyanka Kishore, director and principal economist at the consultancy Asia Decoded in Singapore, said the escalating conflict in the Middle East is heightening risks to growth across Asia-Pacific economies.

At the start of the war, most governments in the region adopted a wait-and-see approach, trying to assess how long it would last and how severe the damage would be, Kishore said. As the conflict drags on, however, risks to oil and gas supply continue to mount.

"At this point ... even if the Strait of Hormuz opens tomorrow, it will take a few weeks for oil supplies to come back to normal," she said.

Governments across the region have since rolled out measures to shield households from surging energy costs.

In Indonesia, President Prabowo Subianto departed for Moscow on an official visit on Sunday, with energy security among the key issues on the agenda, the government said. Finance Minister Purbaya Yudhi Sadewa has estimated that additional energy subsidies could reach as much as 100 trillion rupiah ($5.82 billion) this year because of the impact of the Middle East conflict.

Fabby Tumiwa, executive director of the Institute for Essential Services Reform in Jakarta, said that domestic production accounts for 60 percent of Indonesia's oil consumption, giving the government relatively greater policy flexibility than some regional peers.

However, "the situation will also be critical for Indonesia" as oil prices rise above $100 per barrel, Tumiwa said. "Our situation will be risky."

The government's decision not to raise subsidized fuel prices is a "strategic political choice", he said, adding that any increase could risk triggering social unrest.

Easing pressures

In Australia, the government has cut excise duties on gas and diesel and removed the heavy vehicle road user charge to ease cost pressures.

South Korea has worked to secure oil supplies from multiple countries, including the United Arab Emirates and Kazakhstan, to diversify imports, while exploring alternatives to the Strait of Hormuz, such as Saudi Arabia's Yanbu Port on the Red Sea.

The South Korean parliament approved on Friday a supplementary budget of 26.2 trillion won ($17.6 billion) to minimize the economic impact of rising oil prices.

In the Philippines, President Ferdinand Marcos Jr declared a state of "national energy emergency" and authorized the Department of Energy to make advance payments of 15 percent to secure fuel contracts.

In a statement released on Friday, finance ministers and central bank governors from the Association of Southeast Asian Nations reaffirmed their commitment to deepening regional financial integration and cooperation.

They said they stand ready to take appropriate actions to safeguard macroeconomic and financial stability and to reinforce ASEAN's economic resilience.

Yang Han in Hong Kong and Leonardus Jegho in Jakarta contributed to this story.

prime@chinadailyapac.com