ASEAN Urges US, Iran to Reopen Hormuz and Resume Talks

Source
Korea Economic Daily

Summary

  • ASEAN foreign ministers urged the US and Iran to resume talks to end the conflict and quickly reopen the Strait of Hormuz.
  • Southeast Asia would face a severe economic blow from any Strait of Hormuz blockade because of its heavy dependence on Middle Eastern oil and gas.
  • The International Energy Agency says about 20%% of global seaborne oil trade passes through the Strait of Hormuz, and 80%% of that is bound for Asian markets.

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Photo: somkanae sawatdinak/Shutterstock
Photo: somkanae sawatdinak/Shutterstock

Southeast Asian foreign ministers urged the US and Iran to resume negotiations to end the conflict and reopen the Strait of Hormuz as soon as possible. The joint appeal underscored growing concern that a prolonged Middle East conflict could disrupt energy supplies.

ASEAN, the Association of Southeast Asian Nations, said on July 14 that its foreign ministers issued the joint statement after holding a video conference the previous day.

The ministers urged the US and Iran to continue negotiations that would bring a permanent end to the conflict and help stabilize the Middle East.

They also called for a two-week ceasefire agreement to be implemented "fully and effectively" to prevent further loss of life.

The statement called for the restoration of safe, uninterrupted and sustained passage for ships and aircraft through the Strait of Hormuz. It also urged all parties to ensure the safety of vessels and their crews.

Southeast Asia relies heavily on Middle Eastern oil and gas, making the region especially vulnerable to any closure of the Strait of Hormuz. About 20% of global seaborne oil trade passes through the waterway, and 80% of that heads to Asian markets, Agence France-Presse reported, citing the International Energy Agency.

Earlier, President Donald Trump said the US Navy began blockade operations centered on the Strait of Hormuz at 10 a.m. on July 13 after talks held in Pakistan on July 11-12 collapsed.

Park Sang-kyung, Hankyung.com reporter highseoul@hankyung.com

Korea Economic Daily

Korea Economic Daily

hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
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