ASEAN leaders agree on fuel-sharing plan to ease Iran war impact.

Southeast Asian leaders have committed to new strategies to mitigate the economic damage inflicted by the war in Iran, though they acknowledged that full implementation will require significant time. The Association of Southeast Asian Nations (ASEAN) currently relies on the Middle East for over half of its crude oil imports, making the region highly vulnerable to instability in the area.

Fifty leaders convened in the Philippines on Friday for a critical summit. The closure of the Strait of Hormuz dominated their discussions, as this strategic waterway has remained shut for more than two months, sparking a global energy crisis. While the bloc agreed on a regional fuel-sharing framework to ease the strain, key operational details remain undefined. Officials have yet to determine which nations would receive priority access during a shortage or how the payment mechanisms would function.

Ferdinand Marcos Jr., the Philippine President and current ASEAN chair, welcomed the agreement but stressed the need for clarity on practical arrangements. He highlighted the uncertainty surrounding the new system. "How is the sharing? Who gets what? How do you pay for it? Do you pay for it? Is it an exchange? … We haven't done it before," Marcos stated. He noted that the initiative represents just one of several measures adopted at the gathering.

Beyond the fuel-sharing plan, leaders pledged to develop a regional power grid and establish fuel stockpiles to reduce dependence on Middle Eastern energy. The bloc's Centre for Energy reports that ASEAN 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 nation to declare a national emergency due to dwindling energy reserves. Marcos warned that the economic fallout from the Iran war will persist for years. "A few weeks worth of disruptions will take years to be corrected," he said.

Jamela Alindogan, reporting from the summit in Cebu, described the overarching theme as unity. ASEAN countries pledged to coordinate their responses while protecting national interests. The bloc is still recovering from tariffs imposed by US President Donald Trump last year. Consequently, leaders are carefully recalibrating their international relationships to shield the region from future crises.