BUSINESS chambers across Cebu and the country have raised alarm over the economic repercussions of the escalating conflict in the Middle East, warning of renewed inflationary pressures, higher fuel costs and heightened risks for micro, small and medium enterprises (MSMEs).
In separate statements issued on Monday, March 2, 2026, the Cebu Chamber of Commerce and Industry (CCCI), the Mandaue Chamber of Commerce and Industry (MCCI), the Talisay City Chamber of Commerce and the Philippine Chamber of Commerce and Industry (PCCI) said the tensions involving the United States, Israel and Iran could have far-reaching implications for the Philippine economy despite the country’s geographic distance from the conflict zone.
On Feb. 28, Israel and the United States carried out a joint strike on several targets in Iran, marking a major escalation in tensions. The attacks focused on military bases, missile sites, command centers, and nuclear facilities. Iranian state media and international reports said the strikes also hit top leaders, killing Supreme Leader Ayatollah Ali Khamenei and other senior military officials.
Inflationary risks
The chambers identified rising global oil prices as the most immediate threat.
CCCI said the Philippines, as a fuel-importing nation, will inevitably feel the pressure through higher transportation costs, increased electricity rates and rising prices of basic goods and services. For Cebu’s trade-driven and tourism-dependent economy, higher fuel and logistics costs will directly affect manufacturers, exporters, retailers and transport operators.
MCCI president Barbara “Bambi” Gothong-Tan noted that damage to oil and gas infrastructure and disruptions in major shipping routes in the Persian Gulf could constrain global supply and drive up prices. The resulting increase in logistics and transport expenses would worsen already elevated distribution costs and erode household purchasing power.
Talisay City Chamber of Commerce president Carl Cabusas echoed these concerns, warning that sustained oil price volatility would strain supply chains and production costs, forcing many businesses to adjust prices and pass on increases to consumers.
National energy vulnerability, OFW concerns
In a statement, PCCI expressed “grave concern” over the escalating military conflict and called for an immediate ceasefire and return to diplomatic dialogue.
PCCI underscored the country’s energy vulnerability, noting that the Philippines sources 100 percent of its crude oil imports from the Middle East. With fears of disruption in the Strait of Hormuz pushing oil prices higher, it urged the government to secure alternative fuel sources and accelerate the development of renewable and domestic energy options.
The group also highlighted the risks to more than two million overseas Filipino workers (OFWs) deployed across the Middle East. It called on the Department of Migrant Workers, the Department of Foreign Affairs and Overseas Workers Welfare Administration to activate emergency protocols, maintain open communication with workers and fast-track evacuation or repatriation plans if necessary.
PCCI stressed that remittances — which reached a record $35.63 billion in 2025 — are a lifeline for millions of Filipino families, and warned that any disruption could further dampen domestic consumption.
MSMEs most exposed
All four chambers emphasized that MSMEs, which comprise the majority of businesses nationwide, are the most vulnerable to sudden spikes in operating costs, fluctuating demand and tighter access to working capital.
Beyond inflation, the groups warned that prolonged geopolitical instability could weaken investor confidence, slow tourism flows and temper overall economic growth.
CCCI urged businesses to undertake scenario planning, recalibrate growth targets, review pricing strategies, strengthen cost management, secure alternative supply sources and preserve liquidity.
PCCI, for its part, called on the government to stabilize fuel prices, guard against speculative practices, ensure an adequate supply of basic goods through buffer stocking and price monitoring, and deploy monetary tools to protect the peso and maintain financial stability.
Shared call for prudence
The chambers believe that geopolitical instability in the Middle East translates into oil price volatility, which fuels inflation, strains MSMEs, threatens remittances and undermines economic growth.
The chambers stressed that preparedness, prudence and close coordination between government and the private sector will be critical to cushioning the impact and safeguarding economic stability in the months ahead. / KOC