ASEAN diplomats voice concern over Iran war and oil supply crisis

Southeast Asian nations are experiencing acute oil supply shortages as the conflict between Iran and Israel intensifies and the strategic Strait of Hormuz remains closed to commercial traffic. The narrow waterway, which accounts for roughly a fifth of global petroleum shipments, has been blocked by naval deployments and missile threats, disrupting the flow of crude from the Middle East to Asian refineries that rely on the route for up to 30 percent of their imports.

Indonesia, Malaysia, Thailand, Vietnam and the Philippines have reported rising diesel and gasoline prices, reduced refinery throughput, and heightened concerns over energy security. Regional governments are seeking alternative sourcing, including increased purchases from Russia, the United States and West Africa, while also accelerating discussions on strategic petroleum reserves and domestic production incentives. Shipping firms have rerouted tankers around the Cape of Good Hope, extending transit times by several weeks and adding significant freight costs.

Analysts warn that prolonged closure of the Hormuz corridor could strain the region’s economic growth, particularly in manufacturing and transport sectors dependent on stable fuel supplies. Authorities are monitoring the situation closely and urging diplomatic efforts to restore safe passage through the strait, emphasizing that a swift resolution is essential to mitigate further disruptions to Southeast Asia’s energy markets.