A new report by the International Energy Agency (IEA) says disruptions to oil and gas shipments through the Strait of Hormuz have exposed major vulnerabilities in Southeast Asia’s energy system, highlighting the urgent need for stronger energy security measures and greater regional cooperation.
According to the Southeast Asia Energy Outlook 2026, the Middle East supplies about 60% of Southeast Asia’s crude oil imports, making the region highly vulnerable to supply disruptions. The crisis has already caused shortages of petrochemical feedstocks, chemical products and liquefied petroleum gas (LPG), widely used by households for cooking.
The report warns that Southeast Asia’s energy import bill could rise from an estimated $160 billion this year to $400 billion by 2050, equivalent to around 5% of the region’s economy if current policies remain unchanged.
The IEA said countries are responding with emergency measures, including promoting public transport and remote work, but stressed that long-term solutions are needed to reduce dependence on imported fuels.
Diversifying energy sources, expanding renewable energy, improving energy efficiency and strengthening regional cooperation are identified as key priorities. Renewable power capacity is projected to nearly triple within the next decade, while interest in nuclear energy is also growing as a longer-term option.
Electricity demand is expected to increase rapidly, driven by economic growth, rising cooling needs and greater adoption of electric vehicles. The report notes that one in five vehicles sold in Southeast Asia is already electric.
IEA Executive Director Fatih Birol said balanced policymaking, accelerated clean energy deployment and stronger regional initiatives such as the ASEAN Power Grid will be essential to improve energy security, affordability and sustainability across Southeast Asia.
