The Philippine Chamber of Commerce and Industry has raised alarm over the potential economic impact of the ongoing U.S.-Israeli military strikes on Iran, warning that escalating tensions in the Middle East could significantly strain the Philippine economy.

In a statement issued 1 March 2026, the country’s largest business organization expressed deep concern over the widening conflict and its ripple effects on energy security, overseas Filipino workers and domestic prices. The group joined global calls for an immediate ceasefire and renewed diplomatic efforts but stressed that the Philippines must brace for serious economic consequences.

The PCCI underscored the country’s heavy reliance on the Middle East for its oil supply, noting that the Philippines imports all of its crude oil requirements from the region. With global oil prices rising amid fears of possible disruption in the Strait of Hormuz, the chamber urged the government to urgently diversify fuel sources.

It also pressed the Department of Energy to accelerate investments in renewable energy and other local alternatives, describing these as long-term solutions to reduce the country’s exposure to geopolitical shocks.

Beyond energy concerns, the PCCI highlighted the vulnerability of more than two million overseas Filipino workers deployed across the Middle East.

“Their safety and welfare is our most immediate and non-negotiable concern,” the group said.

The chamber called on the Department of Migrant Workers, the Department of Foreign Affairs and the Overseas Workers Welfare Administration to activate contingency measures, maintain steady communication with Filipinos on the ground, and fast-track evacuation and repatriation efforts where necessary.

It also emphasized the need to provide swift livelihood and reintegration support for returning workers. Remittances reached a record $38.3 billion in 2024 and remain a critical source of income for millions of Filipino households.

At home, the PCCI warned of a possible resurgence of inflation due to rising fuel costs, supply chain disruptions and potential declines in remittance inflows. It said micro, small and medium enterprises are likely to bear the brunt of these pressures because of their limited financial capacity to absorb higher costs.

To cushion the impact, the chamber urged authorities to stabilize fuel prices and guard against speculative practices that could take advantage of the crisis. It also recommended strengthening price monitoring and maintaining adequate buffer stocks of essential goods to ensure steady supply.

On the financial front, the PCCI called for the strategic use of monetary tools to support the peso, uphold financial stability and sustain investor confidence.

The organization said it is prepared to work closely with government agencies, industry groups and international partners in responding to the situation, stressing that the protection of Filipinos abroad and the country’s economic stability must guide the national response.