Iran war: Southeast Asia moves to cushion oil shock with subsidies, alternative fuels

Tensions in the Middle East drive up global oil prices, prompting Southeast Asian countries to implement contingency measures. (Photo: Unsplash)

International oil prices have swung sharply. After U.S. President Donald Trump suggested on March 9 that the war could soon end, prices quickly retreated but remained near recent highs. Southeast Asian economies, many of which rely heavily on imported fossil fuels, are moving to cushion the impact. 

Vietnam plans to remove fuel import tariffs and streamline crude trading procedures, while both Indonesia and Thailand are considering extending fossil-fuel subsidies to ease the pressure. At the same time, governments are stepping up the development of alternative fuels such as bioethanol.