Southeast Asian leaders have approved measures aimed at reducing the economic impact of the Iran war on their countries, but acknowledged these initiatives will take time to take effect. The announcement came during the Association of Southeast Asian Nations (ASEAN) summit in the Philippines, where the shutdown of the Strait of Hormuz became a key focus.
ASEAN members agreed to build a regional fuel-sharing framework to ease economic pressures resulting from the closure of the strategic waterway for more than two months, which triggered a global energy crisis. However, crucial details on how the program will operate remain unclear, including which nations would receive priority during a crisis and the payment mechanism.
ASEAN Chair, Philippine President Ferdinand Marcos Jr., welcomed the outcome but acknowledged the practical arrangements still need to be clarified. “How do we share? Who gets what? How do we pay? Is there payment or not? Or is it an exchange? … We have never done this before,” he said.
Beyond the fuel-sharing framework, the leaders also agreed to develop a regional power grid and fuel reserves, while gradually reducing their dependence on energy imports from the Middle East. According to the ASEAN Centre for Energy, the bloc currently imports more than half of its crude oil and 17 percent of its natural gas from the region. In late March, the Philippines became the first country in the world to declare a national emergency due to dwindling energy reserves.
President Marcos warned that the economic consequences of the Iran war will continue well into the future. “Disruptions that last only a few weeks will take years to fix,” he stressed.
Al Jazeera correspondent Jamela Alindogan, reporting from the summit in Cebu province in the central Philippines, said the overriding theme was unity, with ASEAN countries committing to continued coordinated responses while protecting national interests. She also noted that the bloc is still recovering from tariffs imposed by US President Donald Trump last year and is considering how to adjust relations with other countries to avoid future crises.
