ASEAN energy ministers meet in Manila amid Iran war supply shock

ASEAN energy ministers are meeting in Manila this week as the region faces supply disruptions linked to the war on Iran. The two-day gathering is taking place on Wednesday and Thursday in the Philippine capital. Officials are expected to focus on regional energy security, fuel-sharing and the integration of power grids.

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The meeting comes as Southeast Asia tries to reduce its exposure to energy supply chains affected by conflict in the Middle East. ASEAN member states imported about half of their oil needs from the Middle East before the war began in late February, according to the supplied material. The Philippines, which currently chairs ASEAN, declared a national energy emergency within weeks of the conflict starting after warnings that fuel supplies could run dry in 45 days.

Other economies in the bloc, including Thailand, Vietnam, Indonesia and Cambodia, have already introduced conservation measures. Those steps have included work-from-home arrangements and fuel rationing, showing how quickly the disruption has spread beyond the original conflict zone. Philippine Energy Secretary Sharon S.

Garin said in a statement ahead of the meetings that global energy market shocks can affect fuel costs and availability, disrupt industries and put pressure on households. The talks also carry wider economic significance because ASEAN is one of the world's fastest-growing economic blocs, with a combined gross domestic product of more than $4.2 trillion. The region's dependence on imported oil and natural gas leaves it vulnerable to interruptions in shipping and supply routes.

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The supplied material says the effective shutdown of the Strait of Hormuz has added to those concerns, underlining the strategic importance of the meeting. The agenda is expected to include clean energy cooperation as well as practical arrangements for sharing fuel and linking electricity networks across the region. The International Energy Agency has said energy demand in Southeast Asia has risen sharply over the past decade, while regional oil production has fallen from its 1990s peak.

It also projects electricity demand in the region, which is home to more than 700 million people, will continue to grow strongly through 2030. What remains unclear is how far the ministers will go beyond discussion and whether they will agree on concrete regional mechanisms. The supplied material does not say whether any binding deal is expected from the Manila meetings.

Attention will now turn to whether ASEAN can turn the emergency into longer-term coordination on fuel security, grid integration and response planning.

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