Rising global energy prices and sanctions on oil-producing countries could have wider spillover effects on agriculture, food prices and supply chains, British Ambassador to the Philippines Sarah Hulton OBE said.

At the Makati Business Club’s Foreign Leaders Series, Hulton said energy disruptions are already affecting multiple industries, with concerns that continued volatility could push up fertilizer costs and disrupt food production systems, adding pressure to supply chains.

“Everyone is feeling the impact of that. And we’ve all got an interest on alleviating the current pressure on the global oil markets,” Hulton said.

She also said sanctions are affecting financial systems and cross-border payments tied to oil trade and global flows, particularly imports.

Hulton said the measures are part of a broader political strategy linked to the war in Ukraine, aimed at restricting financial flows that could support Russia’s military operations.

“Funds to Russia fund that war machine,” H.E. Sarah Hulton OBE added.

She said higher energy costs could have secondary effects if volatility persists, with fertilizer prices seen as a key channel into agriculture.

For countries like the Philippines, which rely heavily on imported inputs, she said this could mean higher production costs and added pressure on food inflation.