ASEAN Summit Urgently Addresses Iran War Fallout and Energy Crisis

Southeast Asian leaders are urgently convening in the Philippines to address the escalating fallout from the war on Iran, a conflict that is already driving up energy prices and threatening livelihoods across the region. At the opening of the Association of Southeast Asian Nations (ASEAN) summit on Friday, Philippine President Ferdinand Marcos Jr. warned that the tensions between the United States and Israel against Iran are being felt immediately, causing higher living costs and endangering the safety of citizens both at home and in the Middle East.

"The war on Iran... has been felt 'through higher living costs' and 'threatened livelihoods' both in 'our homelands and amongst our nationals in the Middle East'," Marcos stated. He emphasized that the 11-nation bloc must strengthen coordination and take practical collective measures to secure a stable energy supply and improve interconnectivity.

The urgency of the situation is underscored by the effective shutdown of the Strait of Hormuz, a critical waterway that supplies a large portion of the region's oil and natural gas. According to a leaked draft statement seen by major media outlets including The Associated Press and Channel News Asia, ASEAN is expected to issue a joint demand for the immediate reopening of the strait and improved crisis communication. The draft further outlines a focus on how member nations can collaborate on food and energy security, a direct response to the disruptions caused by the conflict.

The Philippines has been at the forefront of pushing for solutions, advocating for a voluntary energy-sharing agreement to help members shoulder supply disruptions and aiming to establish an ASEAN power grid that integrates the region's electricity networks by 2045. The crisis has already forced Manila to declare a national emergency in March, while neighboring countries like Thailand, Vietnam, Indonesia, and Malaysia have implemented strict energy-saving measures, including price caps and work-from-home schemes. Meanwhile, petrochemical companies in Indonesia, Thailand, and Singapore have declared force majeure to protect themselves from liability due to these uncontrollable global forces.

Tan Hsien-Li, an expert on ASEAN at the NUS Law School in Singapore, believes this summit could yield more than typical diplomatic platitudes. "I expect the bloc to push for more economic cooperation internally and with 'dialogue partners or like-minded regional organisations in Latin America or the Asia-Pacific'," Tan said. She anticipates "substantive outcomes," hoping to see greater implementation of existing cooperation agreements and decisive action regarding the ASEAN Power Grid and the still-negotiated ASEAN Digital Economic Framework Agreement.

Beyond energy, the summit is likely to reiterate the importance of international law, national sovereignty, and freedom of navigation. These issues are particularly sensitive given that many ASEAN members share concerns about China's expansive territorial claims in the South China Sea, another vital trade route. Tensions in the waterway were highlighted just days before the summit when both China and the United States and its allies conducted military drills there.

The gathering also comes as the bloc faces ongoing criticism for its limited power and its longstanding policy of noninterference in members' affairs. Recent flashpoints include the deadly border clashes between Cambodia and Thailand, which led to a peace deal signed in Malaysia earlier this year in a ceremony presided over by US President Donald Trump. Despite that agreement, the nations clashed again in December before reaching a second ceasefire. Ahead of this latest summit, Thai Prime Minister Anutin Charnvirakul and Cambodian Prime Minister Hun Manet pledged to continue dialogue and allow observer teams access to the border, though they did not announce a final resolution to the decades-old dispute.