Overview
- ASEAN economic ministers issued a joint communique warning that the conflict has become a growing threat to global energy security and could significantly slow Southeast Asia’s growth.
- The statement highlighted the Strait of Hormuz as the key risk point, noting it carries about a quarter of global seaborne oil and LNG and that most of that flow is bound for Asia.
- Ministers said oil and LNG prices remain volatile and that freight, insurance, and logistics costs have surged, which is raising living costs for households and pressuring small businesses.
- Officials are pursuing the ASEAN Petroleum Security Agreement for emergency fuel sharing, studying regional oil stockpiles, keeping borders and ports open, and coordinating with international lenders.
- Governments are seeking short-term supply from alternatives, with reports of Russian oil purchases under a temporary U.S. waiver through May 16, while the Philippines earlier declared an energy emergency after losing most Middle East supply.