Middle East War 'Claims Victims' Among Indonesia's Neighbours: Thailand, Vietnam, Philippines
The war occurring in the Middle East has now “claimed victims” amongst Indonesia’s neighbours. The conflict began on 28 February, following attacks by the United States and Israel on Iran that killed Supreme Leader Ayatollah Khamenei. Iran subsequently retaliated by attacking Tel Aviv and several Arab nations hosting US military bases. The country also closed the Strait of Hormuz, a waterway through which 20% of the world’s oil and 25% of its natural gas transit, and vowed to shoot down all passing vessels.
On Monday, Iran began attacking Arab energy facilities. Oil prices briefly surged above US$100 per barrel, though they fell slightly on Tuesday after US President Donald Trump stated the war would be resolved quickly.
The Middle East conflict has demonstrably disrupted global energy supply chains, causing fuel prices to fluctuate and raising concerns about supply shortages in several countries. The regional instability has had significant knock-on effects for neighbouring economies.
Thailand
The Thai government has requested civil servants to work from home where possible as part of a national energy conservation measure. Authorities have also instructed government offices to raise air conditioning thermostat settings to 26 degrees Celsius to reduce electricity consumption.
“The government wants all sectors to use resources wisely and effectively,” the Thai government stated in an official announcement.
The government has also urged officials to avoid overseas travel during this period of energy uncertainty. These measures were implemented after the Thai government secured sufficient oil supplies for approximately two months ahead. However, to preserve energy reserves, Thailand has temporarily halted oil exports. Additionally, the government has set a price ceiling on diesel at roughly 30 baht per litre, equivalent to approximately US$0.94 per litre, for a 15-day period.
“This policy aims to mitigate the impact of surging global oil prices on the public and the domestic transport sector,” the government stated.
Vietnam
Vietnam has taken a different approach, eliminating import tariffs on several petroleum products. This policy, effective from Monday, is intended to prevent potential fuel shortages while stabilising the domestic market.
The Vietnamese government has also encouraged companies to permit employees to work from home where possible, a measure expected to reduce fuel consumption. Hanoi has appealed to the public to reduce personal vehicle use and switch to public transport, cycling, or vehicle sharing.
Despite these measures, the energy market turbulence continues to affect Vietnam. Unleaded petrol prices have surged over 20% since the conflict between the US and Israel against Iran began more than a week ago. This price spike has triggered long queues at numerous petrol stations. In the capital Hanoi, thousands of motorcyclists were observed queuing to purchase petrol on Tuesday. Thus far, Vietnam has managed to avoid widespread fuel shortages, though government media reports that dozens of small-scale petrol stations have begun temporarily closing operations or reducing service hours due to dwindling supplies.
Philippines
Previously, Philippine President Ferdinand Marcos Jr. announced the implementation of a four-day work week system at several Philippine executive branch offices starting 9 March. Marcos stated this measure forms part of the government’s effort to conserve energy and reduce fuel consumption amid soaring global oil prices following the conflict in the oil-producing region.
“From the government’s perspective, beginning Monday, 9 March, we will temporarily implement a four-day work week system at several executive branch offices. This does not include offices providing emergency services or essential services, such as police, fire departments, and offices providing frontline services to the public,” Marcos said.
He also instructed all government agencies to undertake significant energy conservation efforts. Workers have been directed to reduce electricity consumption and fuel expenditure by 10 to 20%.
In addition to reducing work days, Marcos has temporarily banned official travel and non-urgent government activities, including meetings that could be conducted within the office.
The four-day office work policy has been established through Memorandum Circular No. 114, which also references the Civil Service Commission Memorandum Circular No. 6 of 2022, as updated through CSC Memorandum Circular No. 1 of 2025. The circular stipulates that the arrangement will remain in effect “until revoked or cancelled earlier by the president.”
To this end, all agencies have been instructed to formulate their own internal guidelines to ensure proper monitoring and documentation, including attendance verification and performance standards and monitoring mechanisms, in accordance with applicable laws, regulations, and CSC provisions.
Some government agencies have already begun preparing additional measures. From 13 March, the Philippine Department of Trade and Industry will transition its office operations in Makati City to a remote work system. For the private sector, alternative work arrangements have actually been permitted under the Telecommuting Act passed in 2018, though no official announcement has been made.