-- Asean economic ministers issued a warning in a joint statement on Friday that the prolonged disruptions in the Strait of Hormuz are intensifying volatility across global energy markets, raising risks for oil and liquefied natural gas supply flows into Asia, while fueling broader inflationary pressures.
The Asean Economic Community Council noted that these disruptions pose "severe risks to global energy security, fuelling persistent volatility in oil and LNG prices, and sharply increasing freight, insurance, and logistics costs."
While highlighting that 80% of the flows that moved through the Hormuz were destined for Asian markets, the ministers said that the cost of living was rising across the board, while impacting the livelihoods of millions, especially vulnerable and lower-income households.
The bloc also noted a proposal from the Economic Research Institute for Asean and East Asia, a Jakarta-based think tank, to conduct a study on joint regional oil stockpiling to better deal with such disruptions in the future.