FINANCE ministers and central bank governors from ASEAN, Japan, China and South Korea have raised alarm over worsening risks to oil supply and regional economic stability stemming from the escalating conflict in the Middle East, pledging closer coordination to mitigate the fallout.
Meeting on the sidelines of the Asian Development Bank annual gathering in Samarkand, in southeastern Uzbekistan, the ASEAN+3 bloc issued a joint statement warning that intensifying tensions are already weighing heavily on the region’s outlook.
“Increasing conflict in the Middle East has significantly heightened downside risks to the regional outlook,” Bernama-Kyodo cited the statement saying.
The four-day meeting comes at a time when many Asian economies, heavily reliant on crude oil imports from the Middle East, are grappling with severe disruption following Iran’s closure of the Strait of Hormuz amid hostilities involving the United States and Israel.
Officials underscored concerns over heightened financial instability, noting they remain vigilant over excessive volatility and disorderly movements in currency and financial markets, while signalling readiness to intervene where necessary.
They said member economies are “closely monitoring risks arising from excessive volatility and disorderly movements in financial markets” and stand “ready to respond” in line with domestic conditions.
Japanese Finance Minister Satsuki Katayama, who co-chaired the meeting alongside Bank of Japan deputy governor Ryozo Himino and representatives from the Philippines, said participants agreed on the urgent need to strengthen regional cooperation and diversify supply chains.
Japan has already pledged a US$10 billion financial package aimed at helping Asian economies secure alternative energy supplies, with a focus on financing crude oil and petroleum imports.
The joint statement also reaffirmed commitment to multilateralism and support for a global trading system that is “rules-based, non-discriminatory, free, fair, open, inclusive, equitable and transparent.”
Amid shifting supply dynamics, China has increased crude imports from Russia, Indonesia and Brazil while curbing exports, a move that analysts warn could further tighten global supply conditions.
Currency pressures were also highlighted, particularly following sharp movements in the Japanese yen, which recently weakened beyond the 160 level against the US dollar, prompting suspected market intervention by Japanese authorities.
Katayama and Japan’s top currency official Atsushi Mimura have stepped up verbal warnings over potential intervention, as the yen’s decline has been exacerbated by the Bank of Japan’s decision to hold interest rates steady while assessing the impact of the Middle East crisis.
The ASEAN+3 statement cautioned that a prolonged conflict could trigger broader and more persistent shocks beyond energy markets, affecting industrial inputs, logistics, food prices and tourism across the region.
In its latest outlook ahead of the meeting, the Asian Development Bank revised growth projections for developing Asia and the Pacific to 4.7 per cent this year and 4.8 per cent in 2027, citing continued energy market disruptions.
Inflation forecasts were also raised, with prices now expected to reach 5.2 per cent in 2026 and 4.1 per cent the following year, reflecting sustained cost pressures linked to the crisis.
The ASEAN+3 finance ministers’ process, established after the 1997 Asian financial crisis, continues to serve as a key platform for regional financial cooperation, with central bank governors formally joining the framework in 2012. - May 4, 2026
