Asian governments are shifting from individual emergency responses toward coordinated energy-security planning, committing on October 8, 2026, to build oil-stockpiling systems meant to withstand disruptions in the Strait of Hormuz.
Nine Southeast Asian countries, together with Japan and Australia, committed to developing national and voluntary regional oil-stockpiling systems.
The Philippines aims to establish a national oil reserve by the end of 2027, Energy Secretary Sharon Garin said. The country is also considering whether the reserve could eventually serve as a regional storage hub.
Japan is coordinating action plans with Asian partners to increase crude reserves and has discussed cooperation with Saudi Arabia and the United Arab Emirates.
ASEAN countries also pledged to raise renewables to 30% of total primary energy supply and 45% of installed power capacity. They agreed to accelerate work on a regional electricity grid.
The Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. According to the International Energy Agency, about 20 million barrels of oil and oil products passed through it per day in 2025, roughly a quarter of global seaborne oil trade. About 80% of those flows were destined for Asia.
That dependence explains the push for larger reserves. If shipping is disrupted, a country may struggle to obtain fuel even when oil is available elsewhere. Tanker availability, insurance costs, shipping routes and refinery capacity all affect whether supplies reach consumers. Elevated shipping and insurance costs were keeping oil prices high on October 5 despite a partial recovery in exports through the strait.
The IEA’s ASEAN Energy Security Review, published October 5, identified several connected vulnerabilities: dependence on imported oil and liquefied natural gas, exposure to maritime chokepoints, uneven preparedness for supply disruptions, and the need for more storage, infrastructure and emergency planning. It also pointed to regional cooperation and faster deployment of clean energy.
The crisis has accelerated responses to weaknesses that already existed in the region’s energy systems.
Nepal is not a leader in oil stockpiling, but it relies heavily on imported petroleum products, with India central to its fuel supply. Higher international prices or regional supply disruptions can raise import costs, transport fares and household expenses.
