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ASEAN Backs Fuel-Sharing Plan and Power Grid Push as Leaders Confront Iran War Fallout

Endorsements came without the operating rules or money to make them work.

Overview

  • Southeast Asian leaders in Cebu, meeting Friday, endorsed swift ratification of an oil-sharing pact, advanced an ASEAN Power Grid, explored a regional fuel reserve, and urged reopening the Strait of Hormuz with a negotiated USIran settlement.
  • The bloc relies on Middle East supplies for more than half its crude, a squeeze that has driven up fuel and power costs across the region and prompted the Philippines to declare an energy emergency in March.
  • Philippine President Ferdinand Marcos Jr said the fuel-sharing plan still lacks basics such as who gets priority, how stocks are stored, how they are paid for, and when national ratifications will be completed.
  • Singapore’s Lawrence Wong warned that curbs on ships in Hormuz set a risky precedent for Asian sea lanes and backed a proposed ASEAN Maritime Centre in the Philippines to coordinate maritime policy.
  • A draft declaration called for tighter information-sharing and evacuation planning to protect more than a million Southeast Asians working in the Gulf should fighting flare again.