IEA says Southeast Asia energy costs could triple by 2035

Southeast Asia faces a sharply rising energy import bill and persistent economic vulnerability unless it accelerates efforts to diversify its energy supplies and routes, according to a new report from the International Energy Agency. The analysis, released on Tuesday, June 16, 2026, finds that disruptions to oil and gas shipments through the Strait of Hormuz, triggered by conflict in the Middle East, exposed major structural risks in the region's energy sector.

The virtual shutdown of the critical shipping lane had immediate consequences, leading to shortages of key fuels and petrochemical feedstocks and driving up costs. The Middle East supplies 60% of Southeast Asia's crude oil imports, leaving the region highly exposed to such geopolitical shocks. In response, governments implemented emergency measures, including encouraging remote work and public transport use to curb demand.

The crisis has also spurred investment in alternative energy. The report notes rising electric vehicle sales, a renewed interest in nuclear power, and rapid growth in rooftop solar installations, with the Philippines seeing a significant surge in solar imports. However, these changes remain incremental...