ASEAN leaders adopt measures to ease economic pain caused by Iran war

ASEAN leaders, meeting in the Philippines, have agreed on measures to mitigate the economic impact of the Iran war and the closure of the Strait of Hormuz. The bloc, which imports over half its crude oil from the Middle East, will implement a regional fuel-sharing framework, though practical details are still being finalized. Other initiatives include developing a regional power grid and fuel stockpile to reduce reliance on Middle Eastern energy imports. Philippine President Ferdinand Marcos Jr. acknowledged that the sharing mechanisms require further clarification. These measures aim to address the ongoing energy crisis affecting Southeast Asian economies.

At the close of the 48th ASEAN summit in Cebu, Philippine leader Ferdinand Marcos Jr. stated that deeper economic cooperation between ASEAN and China is contingent on finalizing a code of conduct for the South China Sea. This code, under negotiation since 2002, aims to reduce tensions by establishing rules for maritime behavior and crisis management in the disputed waterway. Talks have faced repeated delays due to competing territorial claims and national interests among Beijing and several ASEAN member states, particularly the Philippines. Marcos Jr. emphasized that institutionalizing economic ties cannot proceed until this code is finalized.