ASEAN Leaders Adopt Economic Relief Measures Amid Iran Conflict

ASEAN Leaders Unveil Measures to Mitigate Impact of Iran War on Southeast Asian Economies

Leaders from the Association of Southeast Asian Nations (ASEAN) have agreed on a series of measures aimed at reducing the economic strain caused by the ongoing conflict in Iran. The bloc, which currently imports more than half of its crude oil and 17 percent of its natural gas from the Middle East, gathered for a summit in the Philippines to discuss ways to mitigate the impact of the war.

The closure of the Strait of Hormuz, a critical waterway that has been closed for over two months, was a major focus of the summit. ASEAN leaders agreed to establish a regional fuel-sharing framework, which would allow countries to share oil supplies during times of crisis. However, key details of the program remain unclear, including which countries would be prioritized and how payment would be handled.

The initiative is part of a broader set of measures adopted by ASEAN, including the development of a regional power grid and fuel stockpile. The bloc aims to reduce its dependence on energy imports from the Middle East. In March, the Philippines declared a national emergency due to dwindling energy stockpiles, and leaders warned that the economic consequences of the war would persist for years.

ASEAN Chair Ferdinand Marcos Jr. noted that while the measures are welcome, practical arrangements still need to be clarified. The summit also highlighted ASEAN’s commitment to unity and coordination in responding to global crises, while safeguarding national interests.

Source: Al Jazeera