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Business groups raised deep concerns over the “serious economic consequences” of the escalating conflict in the Middle East, which they said will have spillover effects on international trade and supply chains
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The Philippine Chamber of Commerce and Industry and Philippine Exporters Confederation, Inc. in separate statements joined the international community in calling for an immediate ceasefire and a return to diplomatic dialogue
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Both groups called on the Philippine government to adopt mitigating measures, including ensuring stable fuel supply, reviewing logistics bottlenecks, supporting exporters, and fast-track evacuation and repatriation plans where necessary, among others
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The also pushed for strengthening market diversification efforts
Business groups raised deep concerns over the “serious economic consequences” of the escalating military conflict in the Middle East, which they said will have spillover effects on international trade and supply chains.
The Philippine Chamber of Commerce and Industry (PCCI) and Philippine Exporters Confederation, Inc. (PHILEXPORT) in separate statements joined the international community in calling for an immediate ceasefire and a return to diplomatic dialogue.
The United States and Israel on February 28 launched a coordinated joint attack on various sites in Iran, under the codename Operation Roaring Lion by Israel and Epic Fury by the U.S. Department of Defense. Iran in return launched counter-attacks across the region and closed the Strait of Hormuz.
PHILEXPORT noted that the “situation has already heightened global uncertainty, disrupted airspace and logistics routes, and triggered volatility in energy markets.”
Oil prices have risen sharply amid fears of supply disruptions in key chokepoints such as the Strait of Hormuz — through which roughly 20% of global oil flows — and could surge further if the conflict widens or affects energy infrastructure.
These developments risk increasing global inflation and weakening economic growth, with potential spillover effects on international trade and supply chains, PHILEXPORT added.
For the Philippines, which is a net oil-importing economy, PHILEXPORT pointed out that higher fuel costs will directly raise production, transport, and logistics expenses for exporters, eroding price competitiveness in key markets.
Export sectors such as electronics, garments, processed food, and furniture may face increased shipping rates, insurance premiums, and longer transit times as vessels are rerouted or disrupted.
The group noted that past tensions in the region have already led to higher freight and security surcharges and could again constrain trade flows and tourism, further dampening demand in major export destinations.
At the same time, currency volatility and inflationary pressures in global markets could reduce consumer demand abroad, particularly in energy-dependent economies in Asia and Europe.
PHILEXPORT also highlighted the risks to Philippine exports to the Middle East itself, which remains an important market for food products, construction materials, and services.
Airspace closures and transport disruptions — such as recent flight suspensions in the Gulf region — underscore the fragility of logistics links and the need for contingency planning by exporters, the group said.
READ: US, Israel strike on Iran disrupts aviation landscape
In light of these developments, PHILEXPORT urged the Philippine government to closely monitor the evolving situation and adopt mitigating measures, including ensuring stable fuel supply, reviewing logistics bottlenecks, supporting exporters with trade facilitation and financing, and strengthening market diversification efforts.
The organization likewise called on exporters to review supply chains, hedge against cost volatility where possible, and explore alternative routes and markets.
“At this critical time, PHILEXPORT reiterates its call for peace and stability in the Middle East, recognizing that sustained geopolitical tensions pose serious risks not only to global security but also to the resilience of international trade and Philippine export growth,” the group said.
ALTERNATIVE FUEL SOURCES
For its part, PCCI likewise called on the government to urgently explore and secure alternative sources of fuel supply to reduce our dependence on a single region.
It also urged the Department of Energy to accelerate the development of renewable energy and domestic energy alternatives as a long-term structural solution to our energy vulnerability.
With over two million overseas Filipino workers (OFWs) currently deployed across the Middle East, PCCI also called on the Department of Migrant Workers, the Department of Foreign Affairs, and Overseas Workers Welfare Administration to activate emergency protocols without delay, maintain open and constant communication with workers on the ground, and fast-track evacuation and repatriation plans where necessary.
The group also urged the government to ensure that repatriated OFWs receive immediate livelihood and reintegration support, recognizing that their remittances – totaling a record $38.3 billion in 2024 – are a lifeline for millions of Filipino families.
READ: IMO chief warns on Hormuz attacks as oil route risks escalate
On the home front, PCCI noted that the compounding effect of higher fuel prices, disrupted supply chains, and reduced remittance inflows threatens to reignite inflation and erode the purchasing power of ordinary Filipinos.
It added that micro, small, and medium enterprises, “with their limited financial buffers, will feel this most acutely.”
Recognizing this, PCCI called on the government to stabilize fuel prices and guard firmly against speculative practices that exploit the crisis; ensure the adequate supply of basic goods and commodities through strategic buffer stocking and price monitoring; and deploy monetary tools to protect the peso, maintain financial stability, and preserve investor confidence.
PCCI said it stands ready to work with government, industry associations, and international partners to navigate the crisis.
“The safety of every Filipino abroad and the economic well-being of every Filipino at home must remain at the center of our national response,” it added.— Roumina Pablo
