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A Reuters dispatch on Thursday detailed how Asian countries are racing to raise their oil stockpiling capacity while completing a regional power grid and speeding up renewables deployment to counter the supply risks exposed by the Iran war. Southeast Asia bore the brunt of the energy fallout because 80 percent of the oil shipped through the Strait of Hormuz previously headed to the region. Nine Southeast Asian nations, together with Japan and Australia, issued a joint statement that highlighted support for national oil stockpiling systems and voluntary regional joint stockpiling as the most advanced efforts underway.
Japan’s State Minister of Economy, Trade and Industry Takagi Kei stated on Thursday that his country had agreed on action plans with Asian partners to boost crude oil reserves following a meeting of the Japan-led Asia Zero Emission Community. The minister noted after talks with Saudi Arabia and the United Arab Emirates that both Gulf states had voiced their willingness to cooperate on strengthening Asia’s overall oil stockpiling capacity. Energy Secretary Sharon Garin announced that the Philippines, which imports nearly all its oil and fuel and currently chairs ASEAN, will establish a national reserve by the end of 2027 that could later serve as a regional stockpile.
ASEAN participants are aiming for renewables to account for 30 percent of primary energy supply and 45 percent of installed capacity, according to the joint initiatives outlined in the report. The measures reflect a broader determination to lessen dependence on Middle Eastern fossil fuels amid persistent instability in the Gulf. Officials view the regional power grid as a critical infrastructure project that would enable more efficient distribution of renewable electricity across member states. Such steps could help stabilise energy prices and enhance energy security for millions of residents.
An interactive report published by The New York Times in late September illustrated how the region adapted to the crisis through alternative suppliers including Russia and the United States while drawing heavily on existing reserves. Data from Kpler cited in that analysis indicated the conflict had reduced global oil demand by around 2 percent. Governments and companies alike released substantial volumes from strategic and commercial stockpiles to bridge the supply gap.
The Iran war has further propelled the electrification drive across Asia, with accelerated uptake of electric vehicles and battery storage systems now seen as key to cutting import bills. Ember analyst Euan Graham was quoted in an April report on OilPrice.com as saying that the assumption EV growth would stall outside Europe and China is already outdated, with emerging markets set to shape the future. Replacing oil imports for road transport with EVs could save importers over 600 billion dollars annually, the analyst added.
India has moved to develop strategic reserves of crude oil, liquefied petroleum gas and natural gas while Indonesia has increased biofuel blending in diesel to reduce fossil fuel reliance, an Economic Times article from September noted. ING Groep commodities strategist Warren Patterson observed that the conflict served as a stark reminder of Asia’s energy security vulnerabilities. These initiatives, combined with Japan’s partnerships, signal a concerted regional strategy to build long-term resilience against similar disruptions.
