ASEAN Urged to Diversify Energy to Counter Middle East Shocks

A report by the Malaysian media outlet Bernama argues that the Association of Southeast Asian Nations must accelerate energy diversification and deepen ties with middle and emerging powers in the Indo-Pacific to ensure long-term energy security. This recommendation follows significant energy supply disruptions in the Strait of Hormuz, triggered by a conflict in West Asia involving U.S.-Israel strikes on Iran and subsequent retaliatory attacks from Tehran.

The report suggests that the regional bloc should prioritize closer collaboration with a range of partners, including India, Japan, Australia, Turkey, and the European Union, to reduce dependence on volatile regions. The analysis notes that smaller regional economies, specifically Thailand and the Philippines, have borne the brunt of these supply shocks. In contrast, Malaysia has remained less affected due to its relative energy self-sufficiency.

Market warnings within the report indicate a critical timeline for global energy supplies. Data suggests that usable global oil inventories could be exhausted within three weeks, creating severe potential market stress by mid-June. The report frames these diversification efforts not as optional, but as a necessity to prevent economic destabilization across Southeast Asia as geopolitical tensions in the Middle East persist.