With oil prices having eased substantially in recent weeks following an interim agreement between the US and Iran in mid-June aimed at curtailing hostilities, and regional maritime and military disputes, the prospect of higher export flows could provide some relief for Southeast Asian nations ahead of peak summer season demand.

Intergovernmental organisation the International Energy Agency’s (IEA’s) latest newsletter, published on June 29, highlights that oil demand has shifted considerably over the past four months in response to the oil crisis, with many consumers scaling back their energy use and governments taking steps to shelter households and businesses from the impacts, particularly in the Asia-Pacific region.

The IEA’s latest forecast observes that global oil demand fell by about five-million barrels a day in the second quarter, compared with the same period a year earlier.

The organisation adds that a surge in oil prices has incentivised market participants to draw down inventories at record rates, while the IEA’s largest-ever release of emergency stocks brought additional barrels to market.

On exporters, the newsletter states that there are some Gulf producers that are using alternative routes to market that bypass the Strait of Hormuz in the Middle East, as well as a surge in crude exports from other suppliers, especially the US.

The IEA adds that the global refining system has made some rapid adjustments to compensate not only for losses of Middle Eastern crude oil, but also for the collapse in the export of refined products from the region.

Notably, China’s crude oil imports plunged by 40%, equal to four-million barrels a day, between February and May, helping to significantly ease wider pressures in the global market.

Further, disruptions to oil and gas flows through the Strait of Hormuz have drawn attention to structural risks in Southeast Asia’s energy sector with stronger action required to bolster energy security and affordability as the region’s energy use develops.

The IEA notes that conflict in the Middle East has also disrupted global production and trade in hydrogen-based products, exposing vulnerabilities in supply chains that underpin fertiliser production, refining and chemicals manufacturing.

The latest edition of the organisation’s ‘Global Hydrogen Review’ has highlighted that the crisis is renewing interest in hydrogen and hydrogen-based fuels as options to strengthen long-term energy security; however, low-emission hydrogen remains well short of the scale required to provide an immediate response.

The IEA’s ‘Global Hydrogen Review’ also notes that the demand for hydrogen worldwide surpassed 100-million tonnes in 2025, while production of low-emissions hydrogen grew by 20% to about one-million tonnes.

However, persistent barriers, including high costs, uncertain demand, complex regulations and a lack of infrastructure continue to slow the development of low-emissions hydrogen, placing net-zero and green production targets out of reach.

The current energy crisis has also brought renewed attention to energy efficiency as an important way of strengthening energy security and affordability while also delivering emissions reductions.

At present, governments are seeking to boost the energy efficiency of their economies to make them more resilient to future energy shocks.

With this objective in mind, notable energy events have been highlighted in the IEA’s newsletter, where discourses are primarily aimed at finding novel methods to accelerate progress on energy efficiency.

The eleventh IEA Global Conference on Energy Efficiency is set to take place on June 29 and 30 in Montreal, Canada. The two-day agenda focuses on protecting consumers, increasing energy resilience, and accelerating the clean energy transition.

The LPG Industry Leadership Forum 2026, which took place on June 25 and 26, in Johannesburg, South Africa, was hosted by the IEA in partnership with the World Liquid Gas Association (WLGA).

During this event, ongoing discussions were held between government representatives, industry leaders and international organisations on how to strengthen the resilience of global liquified petroleum gas (LPG) supplies considering the disruptions caused by the Strait of Hormuz crisis.

Discussions focused on strategic LPG storage and reserve mechanisms, the protection of critical infrastructure, supply diversification and strengthening national energy resilience, particularly for developing economies and import-dependent markets in Africa.

Participants recognised the vital role LPG plays in supporting energy security and particularly as the primary cooking fuel for about three-billion people across the developing world.

While the IEA highlights that global progress on energy efficiency and universal electricity access is lagging, closing these critical gaps is stressed by the organisation as vital for achieving global energy security, affordability and climate sustainability.