THE Philippine Exporters Confederation Inc. (Philexport) has called on the government to closely monitor escalating tensions in the Middle East and adopt mitigating measures to cushion potential impacts on Philippine exports.
In a statement, Philexport expressed concern over rising geopolitical tensions involving the United States, Israel and Iran, warning that the conflict is already heightening global uncertainty, disrupting logistics routes and triggering volatility in energy markets.
The exporters’ group noted that oil prices have climbed amid fears of supply disruptions in key shipping chokepoints such as the Strait of Hormuz, through which around 20 percent of global oil flows pass. Further escalation could push energy prices higher, fueling global inflation and slowing economic growth.
“For the Philippines, a net oil-importing economy, higher fuel costs will directly raise production, transport and logistics expenses for exporters, eroding price competitiveness in key markets,” Philexport said.
The group said export industries such as electronics, garments, processed food and furniture could face rising shipping costs, higher insurance premiums and longer transit times as airspace restrictions and shipping rerouting disrupt global trade routes.
Past conflicts in the region have already resulted in freight and security surcharges, which could again constrain trade flows and dampen demand in major export destinations, Philexport added.
Currency volatility and inflationary pressures in global markets may also weaken consumer demand abroad, particularly in energy-dependent economies in Asia and Europe.
Philexport also highlighted risks to Philippine exports to the Middle East, which remains a key market for food products, construction materials and services. The group noted that recent flight suspensions and airspace closures in parts of the Gulf region underscore the vulnerability of logistics links.
Amid these risks, Philexport urged the government to ensure a stable fuel supply, review logistics bottlenecks, strengthen trade facilitation and financing support for exporters and accelerate market diversification efforts.
It also encouraged exporters to reassess their supply chains, hedge against cost volatility where possible and explore alternative routes and markets.
“At this critical time, we reiterate the call for peace and stability in the Middle East,” Philexport said, warning that prolonged geopolitical tensions could pose serious risks to global trade and Philippine export growth. / KOC