South-east Asian nations, which were among the first and hardest hit by the energy crisis due to their heavy reliance on Middle Eastern oil, have welcomed the US-Iran agreement on ending the war. They are particularly relieved at the reopening of the Strait of Hormuz.
Impact of the Conflict on Southeast Asia
Before the crisis, approximately 60% of Southeast Asia's crude oil imports and a third of its gas imports came from the Middle East. Additionally, 45% of its oil product supply depended on Middle Eastern crude. The conflict led to immediate price shocks, prompting governments across the region to implement policies such as encouraging the public to reduce air conditioning use and work from home.
Thailand's Response
Thailand's Ministry of Foreign Affairs issued a statement this week saying the country "warmly welcomes the agreement reached" and expressed hope it would lead to "lasting peace and stability in the region, global economic stability, and freedom of navigation through the Strait of Hormuz."
Domestic diesel prices in Thailand have seen a steady decline over the past week. Energy Minister Akanat Promphan projected that if the situation in the Middle East remains stable, oil prices would likely return to normal in the near future.
