ASEAN ministers warn Iran war is straining energy supplies
Foreign ministers meeting in Manila said Middle East blockades threaten trade and energy supplies across oil-dependent Southeast Asia.
By Lucas Ferreira · Science & Environment Writer
3 min read
ASEAN foreign ministers said Tuesday they were deeply concerned about blockades affecting major Middle East shipping routes, warning that the disruption is hitting energy supplies and trade. Al Jazeera and Reuters reported that the ministers met in Manila as Southeast Asian economies faced fallout from the US-Israel war on Iran and the closure of the Strait of Hormuz.
The meeting brought together foreign ministers from the Association of Southeast Asian Nations and key partners in the Philippines, according to Al Jazeera and Reuters. The agenda also included South China Sea tensions with Beijing and the civil war in Myanmar, both long-running issues for the regional bloc.
ASEAN countries have a combined gross domestic product of $3.8 trillion, Al Jazeera and Reuters reported. The region is exposed to oil supply limits because many member states rely heavily on Gulf countries for crude imports, and the Strait of Hormuz blockade has sharpened that risk.
At the Manila summit, regional leaders and senior diplomats are trying to agree on an oil-sharing mechanism to reduce the impact of the Iran war, according to Al Jazeera and Reuters. The talks come as the conflict’s effects spread beyond the Middle East through energy markets and maritime trade routes.
Yemen’s Iran-aligned Houthis announced a naval blockade on Saudi Arabia on Monday, Al Jazeera and Reuters reported. That move raised the possibility of a new front in the war and added to concerns about global energy supplies and trade.
In a statement, ASEAN ministers said they were “deeply concerned” that the latest developments “severely undermine” mediation efforts and reduce the chances of a peaceful settlement through dialogue and diplomacy.
Energy pressure reaches Southeast Asia
Top diplomats from the United States, Russia and China are also attending the ASEAN summit, Al Jazeera and Reuters reported. Their presence underscored how the war on Iran is affecting international diplomacy as well as fuel supply chains.
Al Jazeera correspondent Barnaby Lo, reporting from Manila, said the conflict has pushed up oil and gas prices in Southeast Asia and slowed manufacturing and exports. Lo said countries in the region have also looked for new trade partners as the war disrupts established supply routes.
Lo said Southeast Asia is far from the Middle East but has been among the regions hit hardest because several ASEAN members depend on Middle Eastern oil. He cited the Philippines, saying it was the first country in the world to declare a national energy emergency and remains under that status.
According to Lo, the Philippines is dealing with both supply shortages and rising fuel costs. He reported that Manila has obtained oil from non-traditional partners, including Russia and China, but has limited control over fuel prices because they are set by market forces.
Myanmar and South China Sea also on agenda
ASEAN ministers are also expected to discuss Myanmar, where the bloc’s peace efforts have stalled, Al Jazeera and Reuters reported. The country has been in conflict since a military coup five years ago, and the war has killed an estimated 100,000 people, according to the report.
Lo reported that ASEAN foreign ministers held an in-person meeting in Bangkok with the foreign minister of Myanmar’s military-backed government before the summit, the first such meeting since 2021. He said the meeting drew criticism from those who viewed it as legitimising the junta.
South China Sea tensions are also likely to feature in the talks, according to Al Jazeera and Reuters. ASEAN members and China have spent nearly 10 years trying to complete a code of conduct aimed at preventing disputes.
Before the summit, China and the Philippines traded accusations after a confrontation between their vessels in disputed waters left a Filipino sailor injured, Al Jazeera and Reuters reported. The US Department of State condemned what it called China’s “dangerous and aggressive” actions and described a “troubling pattern of provocation against lawful Philippine maritime operations”.
This story draws on original reporting from Al Jazeera.