MANILA: The widening conflict in the Middle East is expected to dominate discussions at Friday's ASEAN economic ministers' retreat, with foreign ministers also holding a virtual meeting on the same day to tackle a deepening crisis that has upended global markets.
The Philippines, this year's ASEAN chair, is hosting the meetings as officials weigh impacts and responses to surging oil prices as well as disruptions to shipping, logistics, and trade flows across the region's export-reliant economies.
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"The concern is a given," Philippine trade undersecretary Allan Gepty told reporters, saying the region could not ignore the effects of the crisis on inflation and jobs.
Joint U.S. and Israeli strikes on Iran launched almost two weeks ago have so far killed around 2,000 people and have thrown global energy markets and transport into chaos.
The conflict has effectively shut the Strait of Hormuz, the chokepoint that funnels about a fifth of the world's oil and LNG to Asia, sending crude surging to above US$100 a barrel.
The crisis has forced ASEAN foreign ministers to call a special virtual meeting to assess the implications for Southeast Asia, where several economies rely heavily on crude and LNG shipments from the Gulf.
The Philippines sources much of its oil needs from the Middle East and Qatar's LNG halt has also tightened supplies.
Several ASEAN countries have already taken concrete steps to cope with the impact of the Middle East crisis. The Philippines has shortened the government work week to conserve fuel, and its president has asked Congress for authority to suspend excise taxes on fuel to help stabilise costs.
Vietnam on Thursday cut its retail fuel prices overnight following the easing in global crude oil prices from earlier highs, but the government warned prices will remain volatile, with more supply disruptions anticipated.
Earlier this month, Thailand also halted energy exports to all countries other than Laos and Myanmar.
"It is important that our actions and responses to the ongoing conflicts must be synchronised," Gepty said.
ASEAN foreign ministers have said that the escalation in conflict was "particularly regrettable," and urged an immediate cessation of hostilities, calling on all sides to exercise maximum restraint, protect civilians, and resolve differences through dialogue in line with international law.
