It is well that war is so terrible, otherwise we should grow too fond of it.
— Confederate general Robert Edward Lee
MAYPAJO, Caloocan City — The conflict between Iran and the United States and its allies may have ended, but the impact of the war has left the rest of the world in recovery mode, as many developing countries like the Philippines want to resolve the problems brought about by the disruption of the global oil supply.
The truth is that the war has exposed many nations, particularly in Southeast Asia, to major risks that cost the region many billions of dollars, so the need to diversify sources of energy more quickly is now critically needed to somehow establish economic security.
Based on an International Energy Agency (IEA) report, the overreliance on oil and gas transported through the Strait of Hormuz left Southeast Asia vulnerable to shocks from the Iran war, a “stark wake-up call” for the region’s energy security.
However, the IEA noted that rising sales of electric vehicles (EVs), a renewed interest in nuclear power, and a boom in rooftop solar and other renewable energy installations show the war is spurring change.
Still, more sweeping reforms are needed because otherwise, Southeast Asia’s energy import bill could rise to UD$245 billion by 2035, tripling from US$80 billion in 2024.
According to IEA executive director Fatih Birol, “diversification of energy sources and supply routes has now become a central priority.”
“The energy shock sent Southeast Asia into a state of energy triage, leading to higher energy bills and rising inflation. In a likely setback for efforts to phase out dependence on fossil fuels, the conflict has reinforced the need to rely on coal during times of energy crisis,” Birol pointed out.
“The war is also furthering plans for nuclear power in Southeast Asia, but years-long construction and regulatory processes remain. Indonesia, Vietnam and the Philippines may be the furthest along with nuclear power plans, but their timelines are uncertain,” he added.
Additionally, Sam Reynolds of the US-based Institute for Energy Economics and Financial Analysis cited that the IEA report clearly highlighted that Southeast Asia is at a crossroads.
“In the Philippines, which declared a national energy emergency, consumers have turned to rooftop solar at record rates, as a quick, do-it-yourself solution to rising utility bills,” Reynolds noted.
In agreement, Ivan Cano of the solar company EcoSolutions enthused that “this is the first time (he) has seen a demand shock of this magnitude.”
In the first quarter of the current year, the Philippines became the second-largest destination for Chinese solar exports, with imports reaching around three times higher than the same period the previous year.
Consumers have also driven a shift in the transportation industry as electric vehicle sales more than doubled in 2025 to around half a million units.
Last month, Laos banned the import of fuel-powered vehicles for the rest of 2026 to cut oil imports and encourage the shift to EVs.
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