The ongoing conflict between Israel and Iran may feel like it's happening far away, but its ripple effects can still reach the Philippines—and our wallets might feel it first.
First of all, this kind of war can make oil prices go up. Why? Because both Israel and Iran are in the Middle East, which is home to some of the world's biggest oil producers. If the war spreads or causes problems in nearby countries like Saudi Arabia or Iraq, oil shipments might be disrupted. The result? Global oil prices shoot up. For us in the Philippines, this means higher fuel costs, which can lead to increased fares, electricity bills, and food prices.
Filipino drivers might have to shell out more at the gas station. Jeepney and bus fares may rise too, affecting commuters daily. Since our electricity also partly depends on oil, expect higher Meralco bills if the conflict continues.
Next, our overseas Filipino workers (OFWs) may be affected. Many OFWs work in the Middle East, including in countries like Saudi Arabia, Qatar, and the UAE. If the war gets worse and spreads, the safety and job security of OFWs may be at risk. This might result in lower remittances—the money they send home, which helps many Filipino families and boosts our economy.
The stock market could also take a hit. Investors tend to panic when there’s war, especially involving oil-rich regions. This could make them pull out investments from emerging countries like the Philippines. When foreign money leaves, our peso may weaken, making imported goods more expensive. Think: gadgets, medicine, even food items.
Lastly, inflation—the general rise in prices—may worsen. We're still recovering from the effects of the pandemic and global inflation. An overseas war could make things even harder for ordinary Pinoys, especially those living paycheck to paycheck.
In short, while we are not directly involved in the Israel-Iran conflict, the effects of rising oil prices, risks to OFWs, weakening investments, and overall uncertainty can hurt the Philippine economy.
Let’s hope and pray for peace in the Middle East—not just for the sake of the people there, but also for the millions of Filipinos who may silently suffer if this war continues.
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