Iran War Is Accelerating America’s Decline in Southeast Asia

Washington’s war with Iran may be unfolding thousands of miles away, but in Southeast Asia its political aftershocks are immediate and measurable. Energy shocks, disrupted trade routes, and deepening uncertainty about US leadership are quietly recalibrating regional alignments.

Singapore Foreign Minister Vivian Balakrishnan stated in late March, “I was surprised by the onset of hostilities. I did not think it was necessary. I do not think it is helpful. Even now, there are doubts about legality. For 80 years, the US underwrote a system of globalization based on UN Charter principles, multilateralism, territorial integrity, and sovereign equality. It led to an unprecedented period of global prosperity and peace.”

This statement is hardly surprising. Southeast Asia has long approached great power rivalry through a logic of hedging, seeking to benefit from both the United States and China without committing fully to either. Yet this delicate balance depends on predictability. The U.S.–Iran war has undermined precisely that.

Recent surveys indicate that regional elites increasingly view US global leadership as a source of instability rather than order. The 2026 ISEAS – Yusof Ishak Institute survey shows that concern over US foreign policy now outweighs even anxieties about the South China Sea, with over half of respondents identifying American leadership as their primary geopolitical worry. At the same time, a narrow majority—52 percent—would now align with China over the United States if forced to choose. In Indonesia (80%), Malaysia (68%) and Singapore (66%), respondents show a clear preference for alignment with China over the US. By contrast, only 23% of Filipino respondents express a similar inclination toward China. This shift is not occurring in isolation. The Iran war has amplified an existing credibility........

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