The recent Association of Southeast Asian Nations summit, hosted by the Philippines, unfolded against an uneasy global backdrop. Beneath the bright lights of Cebu¡¯s Mactan Expo Center, Southeast Asian leaders gathered as an ongoing Middle East standoff reshaped global energy and security dynamics.
The Gulf crisis, triggered by the U.S. attack on Iran in late February and the blockade of the Strait of Hormuz in March, has sent shockwaves across the Indo-Pacific. The disruption of the strait ¡ª through which roughly one-fifth of global oil and nearly one-third of liquefied natural gas passes ¡ª has slammed energy markets worldwide and exposed the fragility of import-dependent economies.
For Southeast Asia, the stakes are especially high. The region relies on the Middle East for roughly 55% to 60% of its crude oil imports. As Brent crude prices surged past $120 per barrel, inflationary pressure spread across ASEAN member states. Analysts estimate regional energy import costs have risen by about $3.36 billion per month.
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