The attack on the Thai container vessel, the MV Mayuree Naree, on March 11th marks the beginning of a new era for the critical Strait of Hormuz Shipping Lane. Effects of this situation were felt almost immediately as soaring prices at gas pumps in Isaan and around the world. The Isaan Record investigates and speaks with esteemed professor Dr. Suthin Wianwiwat of Khon Kaen University about what is likely to come next for the Isaan economy and what can be done about it.
On March 11th at around 11AM Bangkok time, the MV Mayuree Naree—a dry goods container ship flying the Thai flag—was struck by projectiles while attempting to exit the Strait of Hormuz from its last docking station at Khalifa Port in the United Arab Emirates. The Mayuree Naree is managed by Precious Shipping, a Thai-owned cargo shipping company established in 1989, headquartered in Bangkok. The Maryuree Naree’s next scheduled stop was meant to be the port of Kandla in Gujarat, India. It was cruising through the Strait with its all-Thai crew when, according to the navy’s Maritime Traffic and Vessel Control Centre, two projectiles hit above the waterline, triggering explosions at the stern and in the engine room and igniting a blaze aboard the vessel.
Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed responsibility for the attack, along with an attempted attack on the same day on another container vessel, called the Express Rome and flying the Liberian flag.
The IRGC said in a statement on X that “any vessel intending to pass [the Strait of Hormuz] must get permission from Iran” and claimed to Iran’s ISNA news agency that the Thai vessel had “ignored the warnings of the IRGC naval forces.”
The Maryuree Naree handles bulk dry goods, like agricultural products, including fertilizers. It is not an oil or gas tanker. But the fate of the Mayuree Naree is tied to the broader situation in the Strait of Hormuz and the oil- and gas-rich Gulf nations, with sweeping consequences felt worldwide, including in Isaan.
The most immediate and broadly experienced consequences of the Strait’s blockage are visible at the gas pumps. It has been widely reported that about one fifth of the world’s petrol supply normally traverses the Strait of Hormuz.
In all countries, gas prices depend on the globally traded petrol price per barrel, plus many other domestic factors like taxes, reserves and support funds, as well as the structure of the domestic market. In March 2026, gas prices in Thailand were the highest since June of 2022.
Diesel prices rose particularly quickly, which in some cases led to panic buying at the beginning of the crisis, as consumers feared being cut off entirely from the vital resource.
The Oil Fuel Fund Act of 2019 established Thailand’s current Oil Fuel Fund, with a stated objective of stabilizing domestic oil fuel prices, especially during an oil price crisis. However, according to government energy officials, the Oil Fund is facing a severe deficit as of the beginning of April. A loan was requested to help replenish the Fund, and given the suddenness of the situation at the Strait of Hormuz, quick action to help finance subsidies for Thai consumers is anticipated, according to officials in the new national government.
Dr. Suthin Wianwiwat, of Khon Kaen University’s Faculty of Economics, said that the risk for the Thai economy is more about effects from rising prices than a risk to supply, and that the government should focus on targeted support rather than broad price controls. Large fuel subsidies may help in the short term, but they are costly and can distort the market if used for too long.
Even as a ceasefire and deal-making among the Iranian, U.S., and Israeli governments are allegedly making progress, experts expect a sustained impact on fuel prices due to a lagged effect on production and on the need to reinstate confidence for tankers, transport ships, and their insurers before restarting trips across the Strait.
At its narrowest point, between the countries of Iran and Oman, the Strait of Hormuz is only about 35 km wide, a very narrow chokepoint for one of the world’s most important maritime shipping lanes.
Energy experts have pointed to a phenomenon whereby increases in the international price for oil generally lead prices at gas pumps to jump quickly, but drops in the international market price lead to slower decreases for consumers. This scenario seems likely in the current environment, given the lag time between restarting oil production in the Gulf and the time it takes for that production to reach markets like Thailand. In order for the production to restart, oil tankers (and their insurers) need to not only be able to re-enter the Strait, but also feel sufficiently confident that their ships will be able to safely exit afterwards and not be stranded.
“If the disruption continues for several months, the impact would be broader,” Dr. Suthin said. Agriculture and transport businesses, as well as purchasing power of poor households, are likely the next to be impacted. Working from home and use of public transport can reduce fuel use in cities, but these strategies are less beneficial in Isaan, where much of the work involves farming and goods transport rather than commuting.
A better approach is to diversify supply sources, ensure enough diesel for transport and agriculture, provide temporary support to vulnerable groups and key sectors, and monitor unfair price increases in essential goods. “These measures can reduce the impact without creating long-term fiscal pressure,” he said.
When asked about the potential role of alternatives such as ethanol, Dr. Suthin noted that Thailand has not developed vehicle and fuel standards at the same scale as countries such as Brazil and Indonesia. Such standards can support the rapid use of very high biofuel blends in a crisis. Brazil has prepared its transport system for high ethanol use through flex-fuel vehicles, while Indonesia has moved more aggressively on higher biodiesel blends. Thailand, by contrast, has not built the same level of readiness for large-scale use of fuels such as E85 or B40. As a result, the country is less prepared to expand ethanol and biodiesel use quickly if imported oil becomes suddenly scarce.
Electric vehicles (EVs) and hybrids are a potential long–term solution for commuters, but EVs still make up a very small share of the vehicle fleet in Thailand..
Another concern Dr. Suthin mentioned for the Isaan region is a possible effect on fertilizers. Thailand imports most of its chemical fertilizers, and part of the supply comes from the Middle East. If prices rise or supply is disrupted, farmers in Isaan may simultaneously face higher costs for both fuel and fertilizer inputs.
According to news reports and the Ministry of Foreign Affairs, 20 surviving crew members of the Mayuree Naree were rescued by the Omani navy and eventually reunited with their families in Thailand. But at least three other Thai crew members remain missing, including Kiattisak Pawaphuchake, reportedly from Nong Bua Lamphu Province. According to his wife and daughter, Mr Kiattisak, a cargo ship electrician for 30 years, was on the verge of retirement.
The casualties of war, and its economic impacts, have already spread well beyond the countries directly involved. Unfortunately, Thais were among the first to feel these impacts. Whereas oil, fertilizers, and other products are crucial inputs to keep the Thai economy humming, transport companies like Precious Shipping, and their insurers, are thrust into the difficult determination about whether resuming transport of these commodities through the Strait of Hormuz is safe enough to be economically viable, and at what point it is worth the risk to people like Mr. Kiattisak and his crewmates, husbands and fathers who paid the ultimate price while simply trying to do their jobs and support their families back home.
