President Marcos has called for a meeting with his economic team to prepare for possible repercussions of rising Middle East tensions, including the Iranian Parliament’s approval to close the Strait of Hormuz—a critical global oil chokepoint—amid escalating conflict with Israel and the United States.

Communications Undersecretary Claire Castro said in her press briefing that the President has called for a high-level meeting with his economic managers to discuss the impact of these developments, particularly on energy and transportation.

“Magkakaroon po ng meeting ang economic team with the President. Kahit walang pasok sa Maynila, magkakaroon po tayo ng press briefing bukas (The economic team will meet with the President, and we will hold a press briefing tomorrow even if there's a holiday in Manila),” she said on Monday, June 23.

The meeting comes as global oil prices hover near $80 per barrel following reports of the US bombing three nuclear sites in Iran, prompting concerns of a broader regional conflict and global supply disruptions.

While full contingency plans are still being finalized, Castro said the government is ready to roll out a P2.5 billion fuel subsidy program to support public utility drivers affected by the fuel price spikes.

“As of the moment, ang maibibigay ng gobyerno ay fuel subsidy para sa ating mga tsuper para po maibsan naman ang kanilang mga alalahanin at para na rin sa mga commuters (At this time, what the government can provide is a fuel subsidy for our drivers to help ease their burdens—and those of commuters),” she said.

Details of the program's implementation, including schedule and coverage, will be disclosed after the Tuesday meeting.

Last week, President Marcos said the government stands ready to extend fuel subsidies to sectors severely affected by potential oil supply disruptions in the Middle East due to escalating tensions between Israel and Iran.

“We are starting already with the assumption that oil prices will in fact go up, and I cannot see how it will not because the Strait of Hormuz will then be blocked if it escalates,” he said on June 18.

The President recalled that the government provided fuel subsidies to the public transport sector during the pandemic. The government likewise granted fuel subsidies to public utility vehicle drivers to help them cope with rising fuel prices in 2023.

“Now we will have to do the same for those who are severely affected by any instability in the price of oil,” he said.

Castro urged the public to stay calm as President Marcos wanted to assure the public that the government is fully prepared.

“Handa po tayo sa anumang mangyayari at lahat po ng pangangailangan ng taumbayan ay tutugunan ng pamahalaan (We are ready for any scenario, and all the needs of the public will be addressed),” she said.

“Huwag po silang mag-alala dahil ang gobyerno po ngayon ay nagtatrabaho para sa ating lahat (People should not worry because the government is working for everyone),” she added.

With rising alarm across the international community following the US strikes and Iranian retaliation, the Palace Press Officer reiterated the President’s call for restraint and dialogue.

“Ramdam po ng Pangulo ang alalahanin ng mga leaders ng iba't ibang bansa (The President understands the concerns of global leaders),” Castro said.

“Ang panawagan ng Pangulo ay magkaroon ng mapayapang pag-uusap at diplomasya (His call is for peaceful dialogue and diplomacy),” she added.

Castro emphasized that the President wants the Philippines to stand for global peace and stability.

“Kailangan din po manindigan para sa pandaigdigang kapayapaan para maging matatag po ang global community (We must stand for global peace to help stabilize the international community),” she said.

Beyond fuel prices, Castro acknowledged that further escalation could trigger a domino effect across critical sectors such as logistics and trade.

“Hindi maiiwasan na iindahin din po ito sa logistics, sa trading (We cannot avoid its effects on logistics and trade),” she said.

“Yun po ang ipinagdarasal natin na maiwasan at mabigyan ng magandang solusyon (This is something we pray to mitigate and address with effective solutions),” she added.

The Department of Finance’s 5.3 percent debt-to-GDP (gross domestic product) target, already under strain, could face additional hurdles due to global uncertainties.

“‘Yan po talaga ang pinagdarasal natin pero sa mga nangyayari po at hindi naman po natin 'to kontrolado, ipanalangin po natin na maabot pa rin natin (With the situation beyond our control, we pray that we could still achieve it),” Castro said.

“Pipilitin po nating ma-attain pa rin po 'yan despite all of this (We remain committed to achieving this despite all of this),” she added.