The offer was made by China’s Taiwan Affairs Office, with spokesperson Chen Binhua saying “peaceful reunification” would provide stronger protection for Taiwan’s energy and resource security under what he called the backing of a “strong motherland.”

The proposal comes as governments worldwide scramble to secure alternative fuel supplies following disruptions to shipping routes through the Strait of Hormuz, a key artery for global oil and liquefied natural gas flows.

Taiwan, which previously sourced about one-third of its liquefied natural gas from Qatar and imports no energy from China, has said it has secured alternative supplies for the coming months, including from the United States, its main international backer.

President Lai Ching-te said energy supplies for the near term were assured and that additional U.S. gas imports would begin from June, according to a statement from his Democratic Progressive Party.

China has long framed economic and security incentives as part of its strategy to persuade Taiwan to accept unification under its “one country, two systems” model, which no major Taiwanese political party supports.

Chen said Beijing was willing to provide “stable and reliable energy and resource security” to improve living conditions for people in Taiwan, reiterating a narrative that closer integration would bring material benefits.

Taiwan’s government, which rejects China’s sovereignty claims, has consistently maintained that only the island’s people can determine its future.

The energy proposal comes against the backdrop of heightened geopolitical strain, with the Middle East conflict triggering volatility in global energy markets and prompting countries across Asia to reassess supply security.

China, the world’s largest oil importer, has also taken domestic measures to safeguard supply, including restricting fuel exports in recent days, according to reports.

Beijing has never renounced the use of force to bring Taiwan under its control, though it has repeatedly stated a preference for peaceful unification.

The latest offer underscores how energy security has emerged as a central element in cross-strait dynamics as global supply disruptions reshape strategic calculations.

The proposal would extend local sourcing requirements across the entire solar manufacturing chain, reinforcing earlier rules that already require the use of locally assembled solar panels in state-run projects.

Under current regulations, companies must use domestically produced solar panels, though key upstream components such as cells, wafers, ingots and polysilicon can still be imported. The new proposal seeks to close that gap by mandating local production of critical inputs.

India has already directed firms to use domestically manufactured solar cells starting June 2026, marking a phased approach toward building a fully integrated domestic supply chain.

Major energy firms including Waaree Energies, Tata Power and Indosol Solar have announced plans to invest billions of rupees to expand manufacturing capacity, aligning with policy signals favoring local production.

The push comes as India targets 500 gigawatts of non-fossil fuel-based power capacity by 2030, a goal that requires rapid scaling of solar installations alongside domestic industrial capability.

India currently depends heavily on China for imports of key solar components, including cells, wafers, ingots and polysilicon. The proposed mandate is expected to reduce that dependence while strengthening domestic manufacturing resilience.

The policy reflects a broader strategy to secure supply chains and support local industry as global competition in renewable energy technologies intensifies.

Speaking to reporters at the White House during a St. Patrick’s Day visit by Irish Prime Minister Micheál Martin, Trump said allied governments had expressed support for U.S. and Israeli actions but were unwilling to provide direct military assistance.

Trump noted that several allied countries had indicated they had no immediate plans to deploy naval forces to help secure the Strait of Hormuz, a critical maritime corridor through which roughly one-fifth of global oil supplies pass.

The comments followed calls by the U.S. administration for international support to maintain shipping access after Iran responded to joint U.S.-Israeli strikes with drones, missiles and naval mines that have effectively hindered tanker traffic.

Despite the criticism, Trump said he had “nothing currently in mind” when asked whether Washington would retaliate against allies for their stance.

“I think NATO is making a very foolish mistake,” Trump said. “Everyone agrees with us, but they don’t want to help.”

Earlier in the day, Trump struck a different tone on social media, stating that the United States no longer needed NATO assistance due to what he described as “Military Success” in the ongoing conflict, now in its third week.

In that statement, he also singled out non-NATO partners Japan, Australia and South Korea, without elaborating on their roles.

Trump has previously raised the possibility of withdrawing the United States from NATO, though he did not revisit that position in his latest remarks.

The standoff over the Strait of Hormuz has heightened concerns about global energy supplies, as disruptions in the narrow waterway can have immediate implications for oil markets and shipping routes.

The reluctance of NATO allies to engage militarily underscores divisions within the alliance over involvement in the conflict, even as diplomatic backing for U.S. actions appears to remain intact.

Takaichi will be the first major ally to hold face-to-face talks with Trump since he urged Japan and other partners to send naval vessels to escort tankers through the strategically vital waterway, which has been largely disrupted by Iran during the conflict.

“The biggest risk is that Trump publicly presses her for security commitments that she can’t deliver on,” said David Boling of the Asia Group consultancy in Tokyo, a former U.S. trade negotiator with Japan.

The Strait of Hormuz handles roughly a fifth of global energy supplies, with about 90% of Japan’s crude oil imports passing through it, underscoring Tokyo’s exposure to the crisis.

Japanese officials said Takaichi had initially planned to steer discussions toward concerns over China’s regional posture ahead of a delayed visit, but shifting U.S. priorities have forced a focus on Iran and maritime security.

Japan has received no formal request from Washington, Takaichi told parliament earlier this week, adding that the government was assessing possible responses within the constraints of its pacifist constitution.

Several U.S. allies, including Germany, Italy and Spain, have ruled out joining a Gulf mission. Kaja Kallas said on Tuesday that no country was prepared to risk personnel in the conflict zone.

Public sentiment in Japan also remains cautious. Fewer than 10% of respondents support U.S. and Israeli strikes on Iran, according to a poll by the Asahi newspaper.

Trump has alternated between criticising allies for their reluctance and downplaying their necessity, singling out countries like Japan that rely on U.S. security guarantees while depending heavily on Middle Eastern oil flows.

Tokyo has historically limited its role in Middle East operations to logistical and intelligence support. Analysts say deploying Japanese vessels into an active conflict zone would face significant legal and political hurdles.

“It has turned into a discussion that shakes the very foundations of the Japan–U.S. security alliance,” said Kazuhiro Maeshima, a politics professor at Sophia University in Tokyo.

Oil flows are expected to begin at 10 a.m. , according to state media citing Oil Minister Hayan Abdel-Ghani. The agreement includes provisions to enhance security around oilfields and ensure continuity of export operations, Kurdish authorities said.

KRG Prime Minister Masrour Barzani said the region would allow crude exports through its pipeline network “at the earliest possible time” given the exceptional circumstances facing the country. He added that talks with Baghdad would continue to lift trade restrictions and provide guarantees to international oil companies to safely resume production.

Barzani also said he had instructed regional officials to facilitate exports following discussions with U.S. envoy Tom Barrack, emphasising the need to prioritise economic stability for citizens.

Tensions between Baghdad and the KRG had escalated in recent days, with Kurdish authorities accusing the federal government of failing to address security and economic challenges affecting the oil sector. Baghdad, in turn, said the KRG had refused to allow use of a regional pipeline as an alternative export route, alleging the imposition of arbitrary conditions.

The dispute unfolded against the backdrop of wider regional instability, including disruptions to crude flows linked to the Iran conflict.

Iraq’s presidency called on both sides to cooperate to restart exports, while parliament issued a seven-point directive urging the government to secure alternative outlets for crude to mitigate economic damage under current security conditions.

The parliamentary intervention followed consultations with the oil ministry to assess the impact of halted exports after the closure of the Strait of Hormuz, a key global energy transit chokepoint, underscoring the urgency of restoring flows through northern export routes.

The restriction, imposed last week and expected to remain in place until at least the end of March, aims to prevent domestic shortages in China, the world’s largest oil importer, according to market sources.

The move curtails exports that were valued at about $22 billion last year.War disruptions amplify supply strainEven before the export curbs, Asian refiners were seeking alternative crude supplies as the conflict in the Middle East disrupted flows from the Gulf.

Several refineries in the region, a key supplier of fuel to Asia, have shut operations as shipping through the Strait of Hormuz was halted.

The combined impact has intensified competition for available cargoes, leaving import-dependent economies exposed to supply shocks.

Australia, Bangladesh and the Philippines, which rely heavily on Chinese refined fuel exports, are expected to face immediate challenges in meeting demand.

China accounted for roughly one-third of Australia’s jet fuel imports last year and about half of supplies to Bangladesh and the Philippines in 2024.

China ranks as Asia’s fourth-largest exporter of refined, or “clean,” fuels after South Korea, India and Singapore, and plays a pivotal role as a swing supplier when regional demand fluctuates.

Analysts say the sudden halt in exports leaves limited room for other suppliers to compensate. “The remaining Asian exporters simply do not have the spare volumes to replicate China’s role as the region’s swing supplier,” Kpler analyst Zameer Yusof said.

Benchmark refining margins in Singapore, known as “cracks,” are expected to continue rising as markets adjust through higher-priced replacement cargoes or reduced demand.

Fuel prices across Asia have climbed sharply. Diesel derivatives rose to $150 per barrel on March 17, while jet fuel swaps reached $163 per barrel, up from about $92 before the war, according to LSEG data.

Gasoline traded at $139.80 per barrel on Monday, compared with $79.30 on February 27.The tightening market is already affecting downstream sectors. Vietnam has warned airlines to prepare for potential flight cuts from April due to fuel shortages linked to export restrictions.

China’s Foreign Ministry said on Monday that military action in the Middle East should cease and that Beijing is willing to work with other countries to ensure energy security.

The conflict between the United States, Israel and Iran has entered its third week, with the Strait of Hormuz — a corridor for roughly one-fifth of global oil and liquefied natural gas flows effectively constrained by Iranian drones and naval mines.

Several U.S. partners, including Germany, Spain and Italy, said they had no immediate plans to send warships to secure the passage, citing legal and political constraints.

German Chancellor Friedrich Merz said Berlin lacked a mandate from the United Nations, the European Union or NATO, and added that Germany had not been consulted prior to the launch of military operations.

Trump, speaking in Washington, said some countries had expressed willingness to assist but criticised others for what he described as a lack of enthusiasm despite long-standing U.S. support.

The disruption in the Strait of Hormuz has heightened fears of supply shocks and inflationary pressure, as energy markets react to restricted flows through one of the world’s most critical maritime chokepoints.Iran has targeted oil infrastructure across the Gulf, including facilities in the United Arab Emirates.

Drone strikes hit an oil facility in Fujairah for a second consecutive day, while operations at key sites, including the Shah gas field in Abu Dhabi, were suspended.

Airspace closures and temporary halts at major hubs, including Dubai’s international airport, underscored the wider economic and logistical impact.

There was no pause in hostilities, with Israel saying it struck Iranian infrastructure in Tehran and positions linked to Hezbollah in Beirut. Israeli officials have indicated plans for at least three more weeks of military operations.

Iran launched overnight strikes on Israel, demonstrating continued long-range capabilities, while warning it would target energy assets in any country facilitating attacks on its territory.

Tehran has also accused the UAE of serving as a launch point for recent U.S. strikes on Kharg Island, a major Iranian oil export hub, signalling a potential widening of the conflict’s geographic scope.

The conflict, now entering its third week, has shut down shipping through the Strait of Hormuz, a critical maritime corridor through which roughly one-fifth of the world’s oil and liquefied natural gas passes, sending oil prices higher and raising fears of renewed global inflation.

Israeli military spokesperson Lieutenant Colonel Nadav Shoshani said the military had detailed operational plans covering at least the next three weeks, with additional scenarios prepared for a longer campaign.

“We want to make sure that they are as weak as possible, this regime, and that we degrade all their capabilities, all parts and all wings of their security establishment,” Shoshani told reporters.

The Israeli military has framed the campaign as focused on degrading Iran’s ballistic missile infrastructure, nuclear facilities and broader security apparatus. Officials say thousands of potential targets remain inside Iran.

Iran launched drone attacks targeting regional sites, temporarily shutting down Dubai airport and striking a key oil facility in the United Arab Emirates, according to reports cited by regional authorities.

The incidents underscored the widening regional impact of the conflict, which has drawn concern from energy markets and governments reliant on Gulf shipping lanes.

Air traffic at Dubai airport was briefly halted following the drone threat before operations resumed.

The closure of the Strait of Hormuz has become one of the most significant economic consequences of the war.

The narrow waterway between Iran and Oman handles roughly 20% of global oil and liquefied natural gas shipments, making it one of the most strategically important energy chokepoints in the world.

The disruption has already pushed oil prices upward and intensified concerns among policymakers about inflationary pressure on global economies.

U.S. President Donald Trump called on Sunday for an international coalition to help reopen the shipping route, warning that the NATO alliance could face a “very bad” future if members fail to support Washington’s efforts.

Allies responded cautiously, expressing support for diplomatic initiatives to restore navigation through the Strait while signaling reluctance to commit to military action.Iran’s Foreign Minister Abbas Araqchi said Tehran had not requested a ceasefire and had exchanged no messages with Washington, according to Iran’s semi-official Student News Network.

Meanwhile, Iran’s Mehr news agency reported that overnight Israeli strikes killed five people and wounded seven others in Markazi province in central Iran. The report said attacks struck a residential area on the outskirts of Arak city and a residential building in Mahallat county.

Israel has said its campaign remains focused on military and strategic infrastructure linked to Iran’s security apparatus.

Futures for the GIFT Nifty were trading at 23,257 at 08:11 a.m. IST, indicating that the Nifty 50 would open above Friday’s close of 23,151.10 after posting its steepest weekly drop in years and entering a technical correction.

Supply route developments lift sentimentMarket sentiment improved after the Wall Street Journal reported that the United States was preparing to announce a coalition of countries to escort commercial vessels through the Strait of Hormuz, a maritime corridor that handles about one-fifth of global oil supply.

Additional support came after two India-flagged liquefied petroleum gas carriers Shivalik and Nanda Devi transporting roughly 92,712 metric tons of LPG successfully crossed the strait last week en route to India, easing immediate concerns about fuel supply disruptions.

India’s foreign minister Subrahmanyam Jaishankar said in an interview with the Financial Times published Sunday that he had been in discussions with Iran and that dialogue had produced some results.

However, investors remain cautious as the conflict in the Middle East continues to threaten energy flows and financial markets.

Oil and currency pressures persist as rude oil prices have stayed above $100 per barrel during the conflict, raising concerns about inflation and economic growth in India

.The surge in energy costs has also pushed the Indian Rupee to record lows against the U.S. dollar, highlighting the vulnerability of the country’s energy-dependent economy.

Traffic through the Strait of Hormuz has been heavily curtailed since the United States and Israel launched a bombing campaign on Iran at the end of February, prompting Tehran to largely halt commercial shipping through the critical waterway.

Members of the party’s Middle East crisis economic response task force said the measures aim to stabilise domestic energy supply and prices as shipments of oil and gas to South Korea have been disrupted by the regional conflict affecting the vital maritime corridor.

According to data from the Korea International Trade Association, South Korea depends heavily on energy imports, sourcing about 70% of its crude oil and roughly 20% of its liquefied natural gas (LNG) from the Middle East.

Democratic Party lawmaker Ahn Do-geol said the government would prioritise managing LNG supplies by increasing electricity production from coal and nuclear facilities while scaling back reliance on LNG-fired power generation.

Limits that capped coal power output at 80% of installed capacity will be lifted starting Monday, Ahn said. Maintenance work at six nuclear reactors will also be completed earlier than scheduled to raise the utilisation rate of nuclear plants from the high-60% range to about 80%.

The government on Friday introduced a price ceiling on gasoline of 1,724 won ($1.15) per litre, with adjustments planned every two weeks to reflect changes in global oil markets.

Ahn said gasoline and diesel prices had already declined since the cap was introduced, falling by 58 won and 77 won per litre respectively as of Sunday.

Officials said a supplementary budget would be drafted by the end of the month and submitted to parliament to cushion the economic impact of higher energy costs.

Democratic Party leader Jung Chung-rae said the party would fast-track approval of the budget within 10 days after it is submitted. The proposed spending package is expected to include compensation for refiners linked to the fuel price cap, energy vouchers for households, logistics support for exporters and expanded investment in renewable energy.

The Budget Ministry said no specific date had yet been set for the supplementary budget but that preparations were underway.

Authorities are also considering designating the Yeosu Petrochemical Complex as a special industrial crisis response zone as part of efforts to support industries affected by the energy disruption.