Commodities Buzz: IEA says Strait of Hormuz crisis reinforces need for Southeast Asia to tackle major energy vulnerabilities

International Energy Agency or IEA has stated in a latest update that governments are taking steps to strengthen energy security, but bolder action and stronger regional cooperation will be necessary as energy demand continues to grow strongly. Disruptions to oil and gas flows through the Strait of Hormuz have exposed major structural risks in Southeast Asia’s energy sector, with stronger action needed to bolster energy security and affordability as the region’s energy use soars. IEA’s 2026 edition of the Southeast Asia Energy Outlook, provides a comprehensive assessment of the latest energy developments across the region, as well as updated projections for the coming decades. It examines energy trends across the 11 countries that make up the Association of Southeast Asian Nations (ASEAN).

As energy security concerns move ever higher on the policy agenda for countries in Southeast Asia and beyond, this year’s report explores the trajectory that the region was on prior to the current energy crisis triggered by the conflict in the Middle East – and considers the potential implications of the crisis for policy priorities and investment strategies. The report highlights the extent to which Southeast Asia is exposed to the current crisis. The Middle East accounts for 60% of the region’s crude oil imports, and almost half of the oil products that are refined or consumed in Southeast Asia come from Middle East crude oil.

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