By CESAR JOLITO III
The General Alliance of Workers Association (GAWA) warned that the Philippines may face significant economic headwinds as tensions in the Middle East escalate, potentially driving up oil prices and straining workers and consumers nationwide.
GAWA Secretary General Wennie Sancho said the conflict involving Iran, the United States and Israel could disrupt global crude oil supplies, exposing oil-importing countries like the Philippines to higher inflation and a weaker peso.
Sancho warned that a prolonged war could have “catastrophic consequences” for the global economy, with ripple effects that may lead to job losses and reduced household purchasing power.
He urged the government to immediately roll out protective measures for vulnerable sectors, including strengthening job-retention programs through wage subsidies and skills training, expanding unemployment assistance, and providing cash aid — either one-time or periodic — to low-income households.
He also called for tighter price controls on essential goods to prevent hoarding and profiteering, alongside expanded food security programs to ensure access to affordable staples.
Fuel prices are expected to climb in the coming weeks as markets react to the geopolitical crisis.
GAWA estimates potential increases of P1.40 to P1.60 per liter for gasoline and around P0.80 per liter for diesel, with further volatility possible once Brent futures trading resumes.
“While we hope for the best, we must prepare for the worst,” Sancho said, stressing the need for stronger social safety nets to cushion the impact of a possible economic shock.
The conflict in the Middle East traces back to June 2025, when Israel attacked Iran to disarm the country of its missile capabilities.
Iran has been allegedly enriching uranium, a key component in building a nuclear weapon, while Tehran poses threats to American and Israeli interests in the Middle East.
Iran has targeted at least six US military sites across the region since February 28.
The closure of the Strait of Hormuz — the only sea passage from the Middle East, and one of the world’s most strategically important choke points — due to the conflict will aggravate the supply of fuel and make survival plans imperative./CJ, WDJ