The war in Iran has intensified energy security concerns across Southeast Asia, with the International Energy Agency warning that the region's reliance on oil and gas shipped through the Strait of Hormuz leaves it vulnerable to major economic shocks. A report released on Tuesday, June 16, projects that if no significant changes are made, Southeast Asia's energy import bill could reach US$245 billion by 2035, up from US$80 billion in 2024. The conflict has triggered energy shortages, leading to higher electricity costs and increased inflation across the region. While sales of electric vehicles have risen and interest in nuclear power and rooftop solar installations has grown, the IEA notes that fossil fuels, particularly coal, are being increasingly relied upon to manage the crisis. Fatih Birol, executive director of the IEA, stated, "Diversification of energy sources and supply routes is now a central priority." The report identifies Indonesia, Vietnam and the Philippines as the Southeast Asian nations most advanced in pursuing nuclear energy, though all face lengthy construction and regulatory hurdles. Sam Reynolds of the US-based Institute for Energy Economics and Financial Analysis said, "The IEA report clearly highlights that Southeast Asia is at a crossroads."
The IEA's warning comes after Southeast Asian nations resumed coal use to offset energy shortfalls caused by the Iran war, undermining previous commitments to reduce fossil fuel dependence. The region's projected energy import bill tripling by 2035 reflects the cost of delayed investment in alternative infrastructure. While nuclear and solar initiatives are expanding, slow regulatory processes in Indonesia, Vietnam and the Philippines could prolong reliance on volatile import channels.
Editorial note: AI-assisted opinion, not established fact. Full disclaimer →
