The Asian Development Bank (ADB) has rolled out a financial support package to help developing member countries (DMCs) cushion the economic fallout from the escalating conflict in the Middle East, as energy prices surge and global supply chains face disruptions.

The move comes as the Philippines, the ADB’s host country, has already declared a state of national energy emergency to address rising fuel costs and potential supply constraints.

“The ADB will deliver rapid, flexible, and scalable assistance to help countries manage immediate pressures and strengthen long-term resilience, notably fast-disbursing budget support and trade and supply chain finance to secure the import of essential goods, now including oil,” ADB president Masato Kanda said in a statement on Tuesday night, March 24.

The ADB said it has sufficient resources to safeguard its existing and planned operations while expanding emergency support in line with the needs of its member economies, including through the use of its countercyclical lending buffer.

The multilateral lender is closely monitoring global market developments, particularly the impact of volatile energy prices, rising inflation, and pressure on external accounts across the region.

According to the ADB’s latest analysis, disruptions to key shipping routes have already driven up costs and delivery times, while supply risks are extending beyond energy to critical industrial inputs such as petrochemicals and fertilizers, with potential knock-on effects on agriculture and food production.

Tourism- and remittance-dependent economies are also facing compounded risks, while heightened uncertainty is tightening financial conditions, putting pressure on currencies and capital flows.

The ADB said it is ready to deploy both financial and technical assistance to help countries manage these risks, maintain macroeconomic stability, and protect vulnerable populations.

Its support package has two main components. The first is fast-disbursing budget support for countries facing fiscal pressures, including the use of the Countercyclical Support Facility to help governments stabilize their economies and mitigate the impact of shocks on livelihoods.

The second component is the Trade and Supply Chain Finance Program (TSCFP), which supports private sector transactions to ensure the continued flow of critical imports, including energy and food. The ADB said it will temporarily reactivate support for oil imports under the program on an exceptional basis, reflecting the severity of the current price surge and supply disruptions.

The ADB said it has begun discussions with the most affected countries on possible immediate assistance and will continue coordinating with governments, development partners, and the private sector to ensure timely and effective responses.

The Manila-based multilateral lender said the goal is to help economies navigate near-term shocks while safeguarding long-term stability, particularly for the poorest and most vulnerable sectors.