IEA report calls Iran war a ‘wake-up call’ for Southeast Asia energy security
7 reported
A new International Energy Agency report warns that the war in Iran has exposed major risks for Southeast Asia's energy sector due to its dependence on oil and gas imports through the Strait of Hormuz. The report, released Tuesday, says the region could face an energy import bill of $245 billion by 2035 if it does not diversify energy sources more quickly. It notes that rising electric vehicle sales, renewed interest in nuclear power, and a boom in rooftop solar show the war is spurring change, but more sweeping reforms are needed. The IEA states that the conflict has reinforced the need to rely on coal during energy crises, a likely setback for phasing out fossil fuels. The report also says fossil fuel prices will likely remain high despite a tentative deal to end the Iran war.
What’s reported
The IEA report was released Tuesday and says the war in Iran has exposed major risks for Southeast Asia.
The region's overreliance on oil and gas through the Strait of Hormuz left it vulnerable to shocks from the Iran war.
Southeast Asia's energy import bill could rise to $245 billion by 2035, tripling from $80 billion in 2024.
Electric vehicle sales in the region more than doubled in 2025 to around half a million units.
The Philippines became the second-largest destination for Chinese solar exports in the first quarter of 2026.
Laos banned the import of fuel-powered vehicles for the rest of 2026 to cut oil imports.
The IEA says the conflict has reinforced the need to rely on coal during energy crises.
Key figures
Fatih Birol, IEA executive director
Sam Reynolds, Institute for Energy Economics and Financial Analysis (IEEFA)
Ivan Cano, EcoSolutions (Manila-based solar company)
Sources: abcnews.com
