An IEA report warns that Southeast Asia's reliance on oil transport through the Strait of Hormuz creates significant financial risks following recent geopolitical instability.

The Iran war has exposed major risks for Southeast Asia that could cost the region billions of dollars, if it does not diversify sources of energy more quickly, according to an International Energy Agency (IEA) report released on Tuesday. An overreliance on oil and gas transported through the Strait of Hormuz left the region particularly vulnerable to shocks from the Iran war, a “stark wake-up call” for its energy security, the report says. It notes that rising sales of electric vehicles, a...