Cebu: Southeast Asian leaders gathered in the Philippine city of Cebu on Thursday with growing concern over the economic impact of the ongoing Iran conflict, as fears rise over energy shortages, higher fuel prices, and slowing economic growth across the region.
The issue dominated discussions at the 48th ASEAN Summit, where leaders from the Association of Southeast Asian Nations explored emergency measures to protect their economies from the effects of instability in the Middle East. The war and the continued tensions around the Strait of Hormuz have become a major concern for Asian nations because much of the world’s oil and liquefied natural gas shipments pass through the narrow waterway.
Philippine President Ferdinand Marcos Jr., who is chairing this year’s summit, urged regional leaders to strengthen cooperation and prepare for a possible long term disruption in global energy markets. He warned that the conflict could place additional pressure on developing economies that are already struggling with inflation and rising living costs.
Several ASEAN countries depend heavily on fuel imports from the Gulf region. As oil prices continue to rise, governments across Southeast Asia are facing increasing concerns about transport costs, electricity prices, and the overall impact on ordinary families. Economists say the longer the conflict continues, the greater the pressure on regional economies.
During closed door meetings, leaders discussed creating emergency fuel sharing arrangements among ASEAN member states. Officials also explored ways to improve regional coordination during supply disruptions and to identify alternative energy sources and shipping routes. While ASEAN has often spoken about stronger energy cooperation in the past, analysts say the current crisis may force governments to move more quickly toward practical action.
The Strait of Hormuz remains one of the world’s most important energy routes, carrying a large share of global oil and gas exports. Continued instability in the area has already caused major uncertainty in international markets. Asian importers are especially vulnerable because many economies in the region rely heavily on imported fuel to support transportation, industry, and electricity generation.
Energy experts attending the summit warned that prolonged disruptions could lead to slower economic growth throughout Southeast Asia. Countries such as Thailand, Vietnam, Singapore, and the Philippines are expected to feel the impact most strongly if fuel costs continue to rise over the coming months.
ASEAN leaders are also expected to issue a joint appeal calling for peaceful negotiations between Iran and the United States and for the protection of international shipping routes. Diplomats involved in the discussions said regional governments are worried not only about energy supplies but also about wider global trade disruptions that could affect food imports, manufacturing, and tourism.
Apart from the Middle East crisis, the summit also addressed several regional security issues. Leaders from Thailand and Cambodia met on the sidelines of the gathering following recent tensions along their shared border. Both countries agreed to continue diplomatic efforts aimed at reducing tensions and maintaining stability.
Myanmar’s political crisis also remained on the summit agenda. ASEAN officials confirmed that talks with Myanmar’s foreign minister may take place soon as part of efforts to reopen diplomatic engagement after years of political isolation following the military takeover in 2021.
Discussions also continued on the South China Sea dispute. ASEAN Secretary General Kao Kim Hourn said there has been progress in negotiations with China on a proposed code of conduct for the contested waters, although major disagreements still remain.
Political observers say this year’s ASEAN summit reflects how deeply the Iran conflict is affecting countries far from the Middle East. What began as a regional conflict is now creating economic uncertainty across Asia and testing ASEAN’s ability to respond together during an international crisis.