ASEAN Grapples with Economic Turmoil Amid Middle East Conflict

ASEAN ministers are addressing the impact of the Middle East conflict on global markets, focusing on surging oil prices and trade disruptions. Special meetings are held as countries like the Philippines and Vietnam adapt policies to stabilize fuel availability. Ministers urge peaceful resolution and synchronized regional responses.

The escalating conflict in the Middle East has taken center stage at the ASEAN economic ministers' retreat, as regional leaders confront implications for global markets. Foreign ministers have convened virtually to address the crisis, with discussions centered on how elevated oil prices and disrupted trade are affecting Southeast Asia's export-dependent economies.

Philippine trade undersecretary Allan Gepty expressed concerns over inflation and employment due to joint U.S. and Israeli strikes on Iran, which have resulted in approximately 2,000 fatalities and turmoil in energy and transport sectors. The shutdown of the Strait of Hormuz has significantly impacted oil and LNG supplies, pushing crude prices above $100 a barrel, prompting ASEAN foreign ministers to convene a special session focusing on regional impacts.

Countries are taking measures to mitigate the Middle East crisis's effects, with the Philippines reducing government work weeks and considering fuel tax suspensions. Vietnam and Thailand have also enacted policies to manage energy supplies and prices. ASEAN leaders call for a ceasefire and encourage dialogue, striving for coordinated regional action.

(With inputs from agencies.)