Leaders from across Southeast Asia have convened in the Philippines to forge a coordinated response to the far-reaching consequences of the ongoing conflict with Iran. The war has triggered a sharp rise in energy prices, impacting economies throughout the region.
During the opening of the Association of Southeast Asian Nations (ASEAN) summit on Friday, Philippine President Ferdinand Marcos Jr. highlighted the profound impact of the United States-Israeli war on Iran. He noted it has led to “higher living costs” and “threatened livelihoods” for citizens both within their home nations and for those residing in the Middle East.
Marcos urged ASEAN, an 11-member alliance comprising nations like the Philippines, Thailand, Singapore, and Malaysia, to “strengthen coordination” and “pursue practical collective measures to safeguard a stable energy supply and improve interconnectivity.”
Southeast Asia stands among the regions most severely affected by the conflict, particularly due to Iran’s effective closure of the Strait of Hormuz. This critical waterway’s disruption has significantly curtailed the region’s access to vital oil and natural gas supplies.
Representing over 700 million people, ASEAN is expected to release a joint statement. A leaked draft, obtained by various media outlets including The Associated Press and Channel News Asia, indicates the statement will call for the reopening of the Strait of Hormuz and enhanced crisis communication and coordination. The draft also emphasizes collaborative efforts among member countries on energy and food security.
The Philippines has been a key proponent of a voluntary energy-sharing agreement among ASEAN members to mitigate supply disruptions, such as those stemming from the Iran conflict. Manila is also advocating for the establishment of an ASEAN power grid, aiming to integrate the region’s electricity networks by 2045.
In March, Manila declared a national emergency due to energy shortages linked to the war. Other nations, including Thailand, Vietnam, Indonesia, and Malaysia, have implemented various energy-saving measures, such as price caps and work-from-home policies. Furthermore, petrochemical companies in Indonesia, Thailand, and Singapore have invoked force majeure clauses, absolving them of contractual liabilities due to circumstances beyond their control.
Tan Hsien-Li, an ASEAN expert from NUS Law School in Singapore, anticipates the bloc will intensify internal economic cooperation and engage more with “dialogue partners or like-minded regional organisations in Latin America or the Asia-Pacific.” She expects the summit to yield more “substantive outcomes” than typical ASEAN gatherings, specifically hoping for greater implementation of existing cooperation agreements for the ASEAN Economic Community, and decisive action on the ASEAN Power Grid and the still-negotiated ASEAN Digital Economic Framework Agreement.
The draft of ASEAN’s joint statement also underscores the importance of international law, national sovereignty, and freedom of navigation. These principles resonate with many ASEAN members who share concerns over China’s extensive territorial claims in the South China Sea – another crucial international trade waterway, much like the Strait of Hormuz.
In the days leading up to the summit, both China and the United States, alongside its allies, conducted military drills in the South China Sea, highlighting the region’s volatile status amidst overlapping territorial claims.
ASEAN, known for its long-standing policy of non-interference in members’ internal affairs, has often faced criticism regarding its perceived limited power and influence.
Despite this, diplomatic efforts continue. On the sidelines of an earlier ASEAN summit in Malaysia in October, Cambodia and Thailand signed a peace deal following deadly border clashes, a ceremony overseen by then-US President Donald Trump. However, clashes resumed in December before a second ceasefire was reached later that month. Ahead of the current ASEAN gathering, Thai Prime Minister Anutin Charnvirakul and Cambodian Prime Minister Hun Manet pledged continued dialogue and observer access to their border, though no resolution to their decades-old dispute was announced.