ASEAN Cautiously Welcomes US-Iran Peace Agreement as Energy Security Concerns Persist

Members of the Association of Southeast Asian Nations (ASEAN) have expressed cautious optimism following a peace agreement between the United States and Iran, though lingering concerns about energy security remain. The announcement was made by ASEAN Business Advisory Council Co-Chair and Chairman of EXIM Bank Malaysia Dato' Sharon Wardini Mohdzani on June 18 during the Russia-ASEAN Summit in Kazan.

The peace agreement, reached after months of conflict that began on February 28, marks a significant diplomatic breakthrough in the Middle East. According to Iranian Deputy Foreign Minister Kazem Gharibabadi, the agreement includes a 60-day ceasefire during which the parties will discuss Iran's nuclear program, among other issues. The US maritime blockade of Iran is set to end on June 15, and the accord mandates an immediate and permanent cessation of military operations on all fronts, including in Lebanon. US President Donald Trump confirmed the signing of the memorandum of understanding with Iran on June 17, with Pakistan serving as a mediator in the negotiations.

While the peace settlement has alleviated immediate concerns, ASEAN officials remain focused on the energy implications. Mohdzani noted that energy security—particularly ensuring adequate supplies of oil, gas, and other energy sources—was a central preoccupation during the conflict. "So now that peace has been established between Iran and the United States, this appears to be less of a concern, but it still remains a concern," he stated. ASEAN's economic interests in stable Middle Eastern energy supplies underscores the region's stake in the broader Middle East conflict resolution.