Can Southeast Asia survive more Iran war fuel shocks?
Analysts warn the region cannot fully insulate itself from an extended conflict if the Strait of Hormuz remains disrupted
Southeast Asia’s governments have spent months trying to blunt the effects of war-driven energy shocks from the Middle East, but renewed fighting between the United States and Iran has exposed how limited those defences are, analysts have warned.
The latest flare-up has revived fears of a second round of fuel disruption across the region, where many economies remain heavily dependent on imported oil and shipping routes linked to the Gulf.
Southeast Asian leaders expressed “grave concern” over the revival of tensions between the US and Iran, urging a “complete and immediate cessation of hostilities across all fronts in the Middle East” at the 59th Asean Foreign Ministers Meeting in Manila on Tuesday.
The foreign ministers said the hostilities would negatively affect “regional trade, energy and food security, including energy markets and supply chains, agricultural production, and the stability of agricultural input supply chains, particularly fertilisers”.
The shaky truce between the US and Iran, formalised in June, ended this month after both sides traded accusations of ceasefire violations.