End oil sanctions to stabilize global supply and prices
US sanctions make it difficult for import-dependent countries to secure fuel. It's time for the Philippines, as ASEAN chair, to take the lead in finding other sources of oil, Manuel Mogato writes
Manuel Mogato | June 1, 2026
Last week, a bit of good news from the Middle East prompted global oil prices to fall.
In the Philippines, pump prices are expected to be rolled back after five weeks of steady increases, a welcome respite for consumers.
What is the reason for the lower global oil prices? There were reports that the United States and Iran are close to a deal to reopen the Strait of Hormuz after months of intense conflict in the Middle East.
The deal could allow super tankers to pass through the narrow strait and deliver crude oil and other petroleum products from Gulf States and Kuwait to the rest of the world.
Wait, stop popping the champagne bottles.
The war in Iran is not over yet.
In fact, the United States continued to bomb targets in southern Iran, and the Islamic Republic is expected to retaliate in the Gulf states, targeting military facilities used by the Americans.
Thus, the search for cheaper, more reliable, and steady alternative oil supply continues for most states in Southeast Asia, particularly the Philippines. (Also read: South China Sea Must Avoid Becoming Hormuz)
Among Southeast Asian countries, the Philippines has one of the thinnest oil reserves. Any slight movement in global oil prices pushes domestic pump prices higher, accelerates inflation, and lowers the economic growth rate. (Also read: Russian oil could save the Philippines’ supply woes)
It is the most vulnerable to the volatile oil markets.
Manila has been struggling to find a reliable source of cheaper oil alternatives. It has asked neighbors, such as South Korea and Japan, as well as the United States and Canada, to supply the country with its energy requirements.
President Ferdinand Marcos Jr. has secured a deal with Japanese investors to help build fuel reserves in Manila after his four-day state visit to Tokyo.
This may take time, and resources are needed to put up a regional oil reserve.
The Philippines needed immediate relief.
Thus, the Philippines was even forced to purchase crude oil from the Russian Far East after the privately run petroleum company Petron lost 4 million barrels of deliveries from the Middle East in late February and early March this year.
There is still uncertainty about whether the arrangement with Russia would continue after the month-long waiver extension issued by the United States expired on May 16.
The United States and its Western allies had imposed strict sanctions on Russia’s oil industry, preventing it from exporting, except to China, India, and its own allies.
In October 2025, Europe joined the fray. It also imposed a package of sanctions against Russia, banned imports of liquefied natural gas (LNG) starting in 2027, and tougher restrictions on the “shadow fleet”.
This could target crude and petroleum products already on floating tankers. This is where smaller states get their supply under a two-month waiver allowed by the United States.
Washington is preventing Moscow from earning millions of petrodollars to finance its conflict in Ukraine.
Kyiv has also been attacking Moscow’s oil fields in the Black and Baltic Seas, damaging and lowering its production.
Beijing and New Delhi ignored the sanctions and continued to import oil from Moscow, taking advantage of cheaper Russian oil.
The delivery time was also faster due to proximity to Russia.
Washington was forced to relax the flow of oil supply from Moscow to stabilize global supply and prices.
For instance, the United States issued waivers for the sale of Russian crude already loaded on tankers.
The waiver ended last month, and Southeast Asian countries, again, began scrambling for alternative supplies. (Also read: Viable alternative to Middle East oil)
An opportunity has presented itself in mid-June when all 11 Southeast Asian leaders gather in the Russian city of Kazan, where the 35th anniversary of the Russia-ASEAN dialogue partnership will be held.
It will be the best time to discuss energy security as the Philippines, Indonesia, Thailand, and Vietnam are seeking oil supply deals with Russia.
ASEAN could also ask the United States to issue another waiver, a second extension, to get access to Russian crude oil already loaded onto tankers.
As chair of the Association of Southeast Asian Nations (ASEAN), the Philippines should take a lead in finding solutions to the global oil shock.
There are other international platforms, such as the Asia-Pacific Economic Cooperation (APEC) forum, the Asia-Europe Summit (EAS), and the United Nations (UN), where the Philippines can play a lead role in ending oil sanctions on Russia and ensuring a steady supply.
Washington could not effectively control global oil trading. Moscow continues to sell its petroleum products to China and India at lower prices, undermining Western competitors.
It should allow oil-thirsty, smaller states to source their supply freely and not be dependent on predatory prices from the United States and the West as an alternative to the Middle East.
Washington’s sanctions penalize smaller countries, like the Philippines. It should end the sanctions now if it wants to stabilize global oil supply and prices.
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