ASEAN economic ministers on Friday said the war in the Middle East was a growing threat to global energy security and could significantly slow regional growth.
“We expressed deep concern that the current disruptions to key maritime routes, particularly the Strait of Hormuz, where around one-quarter of global seaborne oil and liquefied natural gas (LNG) exports pass through, with over 80 percent destined for Asia, are posing severe risks to global energy security, fuelling persistent volatility in oil and LNG prices, and sharply increasing freight, insurance and logistics costs,” the Asean Economic Community Council (AECC) said in a statement issued following an April 30 special meeting.
“We recognized that the impacts of these shocks are extending beyond energy markets to generate inflationary pressures, exchange rate volatility, tighter global financial conditions and heightened uncertainty for businesses and investors,” they added.