The Philippine Chamber of Commerce and Industry (PCCI) warned that escalating military conflict in the Middle East following United States (US)-Israeli strikes on Iran poses a “significant threat” to the economy, urging the government to secure alternative energy sources and protect millions of overseas workers.

In a statement on March 1, the country’s largest business group called for an immediate ceasefire and a return to diplomatic dialogue. 
The PCCI noted the country’s vulnerability to geopolitical shocks in the Gulf, a region that remains the primary supplier of the country’s fuel and a critical source of consumer spending power via remittances.

The Philippines currently sources 100 percent of its crude oil imports from the Middle East, according to the PCCI.

With global crude prices surging on fears of potential blockades in the Strait of Hormuz, the group said the government must urgently diversify its fuel supply to reduce dependence on the single region.

The PCCI also pressed the Department of Energy (DOE) to accelerate the transition to renewable energy and domestic power sources as a long-term buffer against global volatility.

The safety of more than two million overseas Filipino workers (OFWs) stationed in the Middle East is a “non-negotiable concern,” the business group said.

Moreover, it called on the Department of Migrant Workers (DMW) and the Department of Foreign Affairs (DFA) to activate emergency protocols and prepare for large-scale evacuations if the security situation deteriorates further.

Any disruption to the labor market in the Middle East could weaken the country's primary economic pillar.

Personal remittances reached a record ₱2.2 trillion in 2024, providing a vital cushion for domestic consumption.

The PCCI noted that the government must be ready to provide immediate livelihood support to any repatriated workers to prevent a sharp drop in household income.

On the domestic front, the chamber said the combination of higher transport costs and potential declines in remittance inflows threatens to reignite inflation.

Micro, small, and medium-sized enterprises, which typically operate with limited financial buffers, will be the most vulnerable to rising overhead, the group said.

To mitigate these risks, the PCCI urged the state to stabilize fuel prices, monitor for speculative activity, and maintain strategic buffer stocks of basic goods. It also recommended that the central bank deploy monetary policy tools to protect the peso and ensure financial stability amid ongoing market uncertainty.