Marcos told reporters he had consulted counterparts across the 10-member bloc on whether to postpone the gathering, but leaders agreed that coordination was more critical given the external shocks affecting fuel supply chains, food prices and migrant workers.

“The consensus that we came to is that it is precisely now that we must coordinate our efforts,” Marcos said.

The streamlined agenda will concentrate on immediate economic pressures facing Southeast Asia, including volatility in energy markets and rising food costs, which governments in the region are monitoring closely as geopolitical tensions persist.

ASEAN economies are particularly sensitive to fluctuations in global fuel prices due to their reliance on imports, while supply chain disruptions have added strain to domestic inflation dynamics in several member states.

Marcos said discussions would also address the welfare of migrant workers, a key issue for ASEAN countries that rely heavily on overseas employment. Regional governments have been assessing the impact of instability in the Middle East, a major destination for Southeast Asian labour.

The Philippine government has already flagged concerns about overseas workers in affected areas, reflecting broader anxieties across ASEAN about potential displacement and income disruptions.

The decision to proceed with the summit underscores ASEAN’s preference for continuity in regional dialogue despite global uncertainty. Marcos indicated that postponement was considered but ultimately rejected in favour of maintaining diplomatic engagement.

The summit is expected to retain core leadership interactions while scaling back ceremonial and extended policy sessions, reflecting what Marcos described as a need for efficiency under current conditions.

The statement, issued by Iran’s foreign ministry and shared with IMO member states and non-governmental organizations, said vessels that do not “participate in or support acts of aggression” against Iran would be permitted safe passage through the strategic waterway, subject to adherence to safety and security regulations.

However, it specified that vessels, equipment, and assets belonging to what it described as “aggressor parties” including the United States and Israel would not qualify for what it termed “innocent or non-hostile passage.

”Iran said responsibility for any disruption or escalation in the Strait of Hormuz lay with Washington and Tel Aviv, accusing them of waging an “unlawful and destabilising war” that has heightened risks to international shipping and regional stability.

The statement reflects Tehran’s position as tensions remain elevated following the outbreak of war triggered by U.S.-Israeli strikes on Iran on February 28.

The Strait of Hormuz, one of the world’s most critical maritime chokepoints, has been effectively closed since the escalation, contributing to sharp increases in global oil and gas prices.

Iran’s conditional reopening for select vessels introduces limited operational clarity for commercial shipping, though the exclusion of U.S. and Israeli-linked assets underscores the continuing strategic and geopolitical risks in the region.

The shift marks a departure from earlier market resilience, with traders now pricing in longer-term disruptions to energy supply chains and global trade flows. Analysts said the reassessment reflects growing concern that the conflict could inflict sustained economic damage rather than remain a short-lived shock.

Global equities extended losses, with the S&P 500 falling 1.5% on Friday as major technology firms led declines, while futures dropped a further 0.6% in Asian trading. Japan’s Nikkei 225 slid 3.5%, and China’s CSI 300 Index was on track for its steepest losses since tariff-driven market turmoil last year.

MSCI’s global equities gauge, the MSCI World Index, hit a four-month low on Monday after breaking below its 200-day moving average, a key technical level closely watched by investors.

Market participants said the selloff reflected waning confidence in valuations following a rally that had been underpinned by expectations of limited geopolitical fallout.

Investors are increasing cash holdings and reducing leveraged positions across major markets, according to fund managers. The reallocation reflects a broader move to hedge against prolonged instability, with energy stocks emerging as relative beneficiaries amid expectations of tighter supply.

Aaron Costello, head of Asia at Cambridge Associates, said markets had previously been conditioned to expect rapid reversals in geopolitical tensions but were now adjusting to the likelihood of escalation. Speaking at a Milken Institute event in Hong Kong, he said investors were beginning to factor in the depletion of reserves and stockpiles if the conflict persists.

Karen Jorritsma, head of Australian equities at RBC Capital Markets, said the speed of the selloff pointed to weak conviction behind earlier gains, with investors exiting positions quickly as risks mount.

Damage to critical energy infrastructure and supply routes is reinforcing expectations of lasting economic impact. Investors are closely monitoring developments around the Strait of Hormuz, a key artery for global oil shipments, as tensions raise the risk of prolonged supply constraints.

Recent disruptions have already affected liquefied natural gas flows, with nearly a fifth of Qatar’s export capacity reportedly knocked out by Iranian attacks, according to statements cited by Reuters last week. Market participants said such disruptions could have multi-year implications for contracts and pricing if sustained.

The prospect of continued supply shocks has led investors to reassess the effectiveness of potential policy responses, including interest rate cuts or diplomatic shifts, in offsetting the broader economic fallout.