Philippines Declares Energy Emergency; Marcos Signals Openness to Joint Oil Talks with China

The Philippines declared a state of national energy emergency on March 24 as Middle East oil supply disruptions caused by the Iran war choked off crude supplies through the Strait of Hormuz. President Ferdinand Marcos Jr. told Bloomberg News in an interview that the global energy crisis could serve as 'impetus for both sides to come to an agreement' on joint oil and gas exploration in disputed South China Sea waters, specifically referencing Reed Bank — held within the Philippines' EEZ but long contested by China. PXP Energy, which holds a Reed Bank service contract, had previously explored a joint development arrangement with China National Offshore Oil Corp. before talks stalled. The Philippines had approximately 45 days of fuel reserves as of March 20 and was procuring an additional one million barrels.