Economic ministers from the Asean Economic Community Council have raised the alarm over the widening economic impact of tensions in the Middle East, citing risks to energy security, food supply and regional growth.
Joint Statement After Special Meeting
In a joint statement issued after a special meeting on Thursday, April 30, ministers said disruptions in key shipping routes, particularly the Strait of Hormuz, are driving volatility in global oil and liquefied natural gas prices. These shocks are pushing up transport, insurance and logistics costs, with ripple effects across Asean economies.
Impact on Food Systems and Inflation
The council warned that higher fuel costs are spilling into food systems, increasing fertilizer prices and threatening agricultural productivity. This could worsen inflation and deepen cost-of-living pressures, especially for low-income households and micro, small and medium enterprises (MSMEs).
Coordinated Regional Response
To cushion the impact, Asean pledged stronger regional coordination, including keeping trade routes open, improving supply chain transparency and avoiding restrictive trade measures. Ministers also emphasized the need to diversify energy sources, expand renewable energy and enhance cross-border electricity trading to boost resilience.
Tourism and Economic Stability at Risk
The council underscored that tourism and broader economic stability are also at risk as fuel prices climb, urging targeted support measures and sustainable transport solutions. Asean leaders are expected to take up these recommendations at the upcoming summit, as the region braces for prolonged global uncertainty.
