Vietnam Diversifies Oil Supply Amid Iran War Disruptions
Vietnam is sourcing crude from Africa and the United States as imports from Kuwait fell 37.5 percent in the first four months of 2026. While refineries have secured feedstock through July, the shift has contributed to higher inflation and an unusual trade deficit for the export-reliant nation.
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Vietnam cut oil imports 23% to 3.8 million tons through April 2026 as it diversifies energy sources following the Iran war that began on February 28. Shipments from Kuwait fell 37.5% to 2.5 million tons, forcing Hanoi to source crude from five new nations. Rising import costs and fuel shortages are driving inflation, threatening the stability of Vietnam's export-driven manufacturing sector.
