Particle.news
Download on the App Store

IEA Warns Iran War Has Exposed Southeast Asia's Energy Vulnerability

The agency says rapid diversification, including renewables, nuclear, cross-border grids, storage and electrified transport, will help shield the region from costly import shocks.

FILE - This aerial view on Jan. 19, 2025, shows the Bataan Nuclear Power Plant in the Philippines, which has never produced a single watt of energy. (AP Photo/Anton L. Delgado, File)
FILE - A group of workers installs solar panels on the roof of a warehouse near Jurong Island in Singapore on Oct. 6, 2025. (AP Photo/Anton L. Delgado, File)
FILE - A boy fishes in front of the Bangchak Oil Refinery, home to Thailand's newest sustainable aviation fuel facility, in Bangkok on Jan. 3, 2026. (AP Photo/Anton L. Delgado, File)
FILE - A motorcyclist drives past the South Luzon Thermal Energy Power Plant in Calaca, Batangas, in the Philippines on Oct. 4, 2025. (AP Photo/Anton L. Delgado, File)

Overview

  • The IEA released a regional outlook on June 15–16 that calls the Iran war a "stark wake-up call" and says the Strait of Hormuz disruptions have left Southeast Asia heavily exposed to Middle East oil and LNG supply shocks.
  • The report projects the region's energy import bill could rise sharply without policy change, citing a scenario that would take imports from about US$80 billion in 2024 toward roughly US$245 billion by 2035.
  • Governments and consumers are already reacting with emergency measures and market shifts, including the Philippines' national energy emergency, a surge in rooftop solar imports, rising EV sales, and Laos' temporary ban on fuel-vehicle imports for 2026.
  • The IEA warns short-term pressures will likely push countries back toward coal for immediate supply security even as interest in nuclear power grows, but nuclear projects face multi-year construction and regulatory lead times.
  • The agency estimates roughly US$600 billion will be needed over the next decade for power plants and grid expansion and highlights large additional spending for transmission, cross-border links and battery storage to make the clean transition durable.