PHILEXPORT warns Mideast tensions threaten exports

The Philippine Exporters Confederation, Inc. (PHILEXPORT) expressed deep concern Sunday over escalating tensions in the Middle East involving the United States, Israel, and Iran, calling for immediate de-escalation and a return to diplomacy.

The organization cited disruptions to airspace and logistics, rising oil prices, and global uncertainty.

“Higher fuel costs will directly raise production, transport, and logistics expenses for exporters, eroding price competitiveness in key markets,” PHILEXPORT said, noting that electronics, garments, processed food, and furniture sectors may face higher shipping rates, insurance premiums, and longer transit times.

PHILEXPORT also highlighted risks to exports to the Middle East, a key market for food products, construction materials, and services, amid flight suspensions and transport disruptions.

The group urged the Philippine government to ensure stable fuel supply, address logistics bottlenecks, support exporters with trade facilitation and financing, and strengthen market diversification. Exporters were advised to review supply chains, hedge against cost volatility, and explore alternative routes and markets.

PHILEXPORT reiterated its call for peace and stability in the Middle East, stressing that sustained geopolitical tensions pose serious risks to both global security and Philippine export growth.