Impact of Hormuz Closure on ASEAN's Energy Security and Renewables

Apr 15, 2026

79 min

Apr 15, 2026 06:30

What the Hormuz shutdown means for Asean’s energy security, renewables: 10 things to know

## Strait of Hormuz Shutdown

The closure of the Strait of Hormuz on February 28, 2026, has significantly disrupted global oil flows, affecting about a quarter of the world's daily seaborne oil. This has led to increased fuel prices and heightened concerns over energy supply security, particularly impacting the ASEAN region.

## ASEAN's Energy Vulnerability

ASEAN countries, heavily reliant on imported fuel, are experiencing economic strain due to the Hormuz shutdown. The region, with over 700 million people, is facing rising inflation and energy costs. The Philippines and Vietnam are particularly affected due to their high dependency on Middle Eastern oil.

## Diversification and Renewables

While ASEAN is pushing towards renewable energy, the transition is not immediate. Hydropower and solar energy are becoming more cost-effective, but they cannot fully replace oil in critical sectors like transport and petrochemicals. The region aims for 45% renewable capacity by 2030.

## Challenges and Opportunities

The crisis highlights ASEAN's need for energy diversification and stronger regional coordination. There is a growing interest in diversifying energy sources beyond the Middle East and enhancing regional power grid connections. However, reliance on Chinese supply chains for renewable technologies poses new challenges.

## Lessons from Europe

ASEAN can learn from Europe's coordinated approach to energy reserves and crisis management. Establishing strategic reserves and enhancing cooperation among member states could improve resilience against future disruptions.

## Path Forward

ASEAN must focus on diversifying energy sources, strengthening infrastructure, and implementing robust crisis-response strategies. While renewables are crucial, they must be part of a broader energy mix to ensure long-term security and stability.

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