ASEAN leaders meet at annual summit in Philippines amid energy, economic fallout from Iran war
Asia-Pacific, News May 9, 2026 Comments Off on ASEAN leaders meet at annual summit in Philippines amid energy, economic fallout from Iran war6 minute read
Leaders of the Association of Southeast Asian Nations (ASEAN) gathered in Cebu City, Philippines, on May 8, 2026, for the bloc’s annual summit, with the ongoing Iran war and its impact on regional energy security dominating discussions.
The summit comes as Southeast Asian economies face mounting pressure from rising fuel prices, supply chain disruptions, and growing uncertainty across global energy markets.
The conflict in the Middle East, particularly the prolonged disruption around the Strait of Hormuz, has exposed the vulnerability of many Southeast Asian nations that remain heavily dependent on imported oil and liquefied natural gas (LNG).
The situation has driven up transportation, electricity, and food costs across the region, forcing ASEAN leaders to consider coordinated emergency measures aimed at protecting economic stability and regional energy security.
Focus on Energy Security
Opening the summit, Philippine President Ferdinand Marcos Jr. stressed the importance of regional unity and preparedness amid what he described as a highly volatile international environment.
“We must ensure regional energy security and resilience,” Marcos said during his remarks. “At a time of heightened volatility, ASEAN must strengthen coordination and reinforce preparedness, pursue practical collective measures to safeguard a stable energy supply and improve interconnectivity.”

The Philippines, which currently chairs ASEAN, has been among the first countries in the region to declare an energy emergency following the escalation of the Iran conflict. Manila has strongly advocated for a regional oil-sharing arrangement that would allow member states to assist one another during major supply disruptions.
ASEAN leaders later issued a joint statement reaffirming their “shared resolve” to strengthen regional resilience against external economic shocks, particularly those affecting fuel and energy supplies.
The statement called for the activation of the ASEAN Framework Agreement on Petroleum Security, a mechanism designed to facilitate voluntary fuel-sharing cooperation among member states during emergencies.
“We expressed serious concern over the rapidly evolving situation in the Middle East, which poses a grave threat to the lives and safety of civilians, as well as to regional and global peace and stability,” the statement said.
Renewable Energy Plans
Beyond emergency fuel cooperation, ASEAN leaders also emphasized the need to reduce long-term dependence on oil imports through energy diversification and infrastructure integration.
A draft contingency framework discussed during the summit includes plans to accelerate the development of a regional power grid aimed at improving electricity connectivity across Southeast Asia. Leaders also discussed increasing investment in renewable energy sources, expanding electric vehicle adoption, and exploring civilian nuclear energy under international safety standards.
The joint declaration highlighted the importance of reducing reliance on oil-fired power generation while strengthening renewable energy capacity across the region.
“In view of the evolving regional and global landscape and emerging multi-polar world architecture, we reaffirmed our unity and collective commitment to ensuring that ASEAN remains resilient, responsive and forward-looking in navigating external shocks and safeguarding the well-being of its peoples,” the leaders stated.
Secretary-General of ASEAN, Dr. Kao Kim Hourn, today participated in the ASEAN Joint Foreign and Economic Ministers’ Meeting, in Cebu, the Philippines. Co-chaired by H.E. Ma. Theresa P. Lazaro, Secretary of Foreign Affairs of the Philippines and H.E. Ma. Cristina A. Roque,… pic.twitter.com/I7MceakpjK
— ASEAN (@ASEAN) May 7, 2026
The economic impact of the conflict has already become visible across Southeast Asia. Rising oil prices have increased electricity generation costs, while fertilizer shortages linked to higher energy prices have contributed to growing food inflation. The aviation sector has also been affected, with higher jet fuel costs reducing travel demand and placing additional pressure on tourism-dependent economies.
ASEAN economic ministers, who met ahead of the summit, said they had identified “practical, concrete response measures” to guarantee regional food and energy security, although specific details were not publicly disclosed.
Concerns Over Citizens in the Middle East
ASEAN leaders are also discussing evacuation and protection measures for Southeast Asian citizens currently living and working in the Gulf region.
More than one million Southeast Asians are employed across Middle Eastern countries, particularly in the Gulf states. Several citizens from ASEAN member states have reportedly been killed since the conflict escalated earlier this year.
Governments across Southeast Asia have been preparing contingency evacuation plans in case hostilities intensify further or regional instability spreads beyond current conflict zones.
The issue has become particularly sensitive for countries such as the Philippines and Indonesia, which maintain large overseas worker populations in the Middle East and rely heavily on remittance inflows from the region.

South China Sea Tensions
Although the Iran conflict dominated discussions, regional security issues within Asia also remained high on the summit agenda.
ASEAN leaders discussed the continuing disputes in the South China Sea, where tensions between China and several Southeast Asian claimants have intensified in recent years.
The Philippines, Vietnam, Malaysia, and Brunei all maintain overlapping territorial claims with Beijing in the disputed waters. Maritime confrontations between Chinese and Philippine vessels have become increasingly frequent, raising concerns over the possibility of accidental escalation.
ASEAN and China have spent more than a decade negotiating a Code of Conduct aimed at preventing conflict in the South China Sea. A separate leaders’ statement expected after the summit is anticipated to reaffirm efforts to conclude an “effective and substantive” agreement.
The maritime disputes remain one of ASEAN’s most difficult strategic challenges, particularly as member states continue balancing economic relations with China against growing security concerns in the region.
Myanmar and Thailand-Cambodia Conflict
The ongoing civil war in Myanmar also resurfaced as a divisive topic during summit discussions.
ASEAN foreign ministers agreed to hold virtual talks with Myanmar’s representatives as part of efforts to gradually restore engagement with the country. Myanmar’s military leadership has largely been excluded from ASEAN summits since the 2021 military coup that removed the elected government of Aung San Suu Kyi.
The crisis continues to divide ASEAN internally. Countries such as Thailand have favored renewed engagement with Myanmar’s leadership, while others, including Singapore, Malaysia, and the Philippines, have pushed for stronger criticism of the military government.
Leaders also addressed recent border tensions between Thailand and Cambodia. Both countries reportedly agreed to resume talks aimed at preserving a fragile ceasefire following mediation efforts by Marcos.

The discussions reflected ASEAN’s broader challenge of maintaining regional cohesion while simultaneously responding to multiple geopolitical and economic crises.
As the summit concluded, ASEAN leaders sought to present a message of unity and strategic resilience amid a rapidly shifting global environment increasingly shaped by energy insecurity, geopolitical competition, and regional instability.




















