AMID the Middle East conflict, international oil prices have risen sharply, with Brent crude prices averaging about 60 per cent higher in September 2026 than in February 2026.
The surge is fanning inflation and cost-of-living pressures across the world, including the Asean+3 region – which consists of Asean members as well as China, Japan and South Korea. Governments are facing intense pressure to shield households and businesses from higher energy costs.
Yet, successive shocks previously – from the Covid-19 pandemic to the inflation that followed the war in Ukraine – have left many governments with higher public debt and less fiscal room. Population ageing and the energy transition will add to these demands.