Conflict Impact on PH Economy Minimal, for Now

The ongoing conflict in the Middle East is seen to have a "minimal" economic impact for now, but the government is bracing for all possible scenarios, including the potential closure of the Strait of Hormuz, which may force the Philippines to look for other oil supply sources and routes.

- By Alexis Romero

President Marcos met with his economic team yesterday at Malacañang to assess the effects of the war between Israel and Iran and to discuss measures that would cushion the impact of the price shocks on vulnerable sectors.

The meeting came hours after US President Donald Trump announced a six-hour ceasefire, which resulted in the easing of oil prices and sparked hopes that a peaceful resolution to the conflict would be achieved.

"So far, based on what is happening today, so far as the conflict has subsided and the prices have gone down, it seems that the impact on our economy is minimal," Energy department officer-in-charge Sharon Garin, who was present at the meeting, said at a Palace press conference.

"I cannot give you the exact numbers, but the impact is minimal that I don't think it's alarming for our economic managers," she added.

According to Garin, Department of Economy, Planning and Development Secretary Arsenio Balisacan also talked about the impact of volatile oil prices on overseas Filipino workers' remittances, exports, imports and trade.

"With the current situation that may no longer escalate or is slowing down or the ceasefire, hopefully it will last longer, the ceasefire, among all the countries involved. And I think Secretary Arsi (Balisacan) added that of course, Iran and Israel will always have conflict. But other countries may not be involved," the energy official said.

"With all those considerations, I don't have the numbers here... but the impact is so minimal to our economy that it doesn't seem alarming as of now as long as it does not escalate again or... worsen," she added.

Garin said oil prices, which breached $70 per barrel last Monday, went down to $69 per barrel yesterday morning.

The downward adjustment was linked to Trump's ceasefire announcement, which lessened the speculations in the market.