Asean economic ministers say Middle East war could significantly slow regional growth

[MANILA] Asean economic ministers said in a joint statement on Friday (May 1) that the war in the Middle East is posing a growing threat to global energy security and could significantly slow regional growth.

“We expressed deep concern that the current disruptions to key maritime routes, particularly the Strait of Hormuz, where around one-quarter of global seaborne oil and liquefied natural gas (LNG) exports pass through, with over 80 per cent destined for Asia, are posing severe risks to global energy security, fuelling persistent volatility in oil and LNG prices, and sharply increasing freight, insurance and logistics costs,” the Asean Economic Community Council said.

Asean said that rising energy and transport costs are cascading into food systems, including higher fertiliser prices and potential disruptions in fertiliser supply chains.

The ministers noted that the cost of living is rising across the region, with low-income households and small businesses most affected.

They reinforced a commitment to avoid unnecessary trade barriers and non-tariff measures, particularly on food and energy inputs, during periods of crisis.

They committed to keeping trade infrastructure such as land borders, airports and seaports open to maintain the flow of essential goods.

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The grouping noted proposals to study regional oil stockpiling.

They also agreed to deepen coordination with international financial institutions to reinforce the region’s economic resilience. REUTERS