Iran-US and Israel War Brings Blessings for China

The war between the United States (US) and Israel with Iran, which started on 28 February 2026, has disrupted the flow of crude oil and natural gas through the Strait of Hormuz. This has left governments in Southeast Asia scrambling to ensure sufficient energy supplies for industry, aviation, and household needs. At the same time, China is attempting to turn this anxiety into an advantage. “China is willing to strengthen coordination and cooperation with Southeast Asian countries to jointly address energy security issues,” said Spokesperson for the Chinese Ministry of Foreign Affairs, Lin Jian, as quoted from the DW website on Tuesday, 31 March 2026. Southeast Asian countries have implemented various energy-saving measures and subsidies, and are competing to find alternative suppliers and trade routes. Even countries like Malaysia and Brunei Darussalam, which are producers and exporters of crude oil and natural gas, remain vulnerable to inflation and regional supply chain disruptions. On 24 March 2026, the Philippines declared a one-year national energy emergency, warning of an “imminent threat” to energy supplies. Manila has also introduced a four-day workweek for government offices and restricted energy use. The Philippines is providing cash assistance to transportation workers, while warning that fuel shortages could ground parts of its airline fleet. Vietnam has utilised its energy price stabilisation fund and asked airlines to prepare for operational cuts, while importers warn that aviation fuel supplies are only secure until March 2026. Indonesia has pledged to absorb some of the impact through state budgets and increased subsidies. Thailand is considering additional aid amid surging diesel prices that are hitting sectors like fisheries. Malaysia is also boosting subsidies to keep fuel prices stable. Governments in Southeast Asia are seeking temporary supplies from outside the Gulf region. Reuters reported last week that Asia is expected to import the largest volume of Russian fuel in March 2026, with Southeast Asia as the largest recipient. Meanwhile, China is using this energy crisis to present itself as a responsible and stabilising actor, calling for de-escalation in the Middle East and pledging to work with Southeast Asian countries to address energy shortages.