By Dean Aubrey Caratiquet
The uptick in violence and escalating tensions in the Middle East has placed several countries on edge, as nations in Asia’s arid region trade blows on each other leading to displaced civilians and damaged infrastructure, with businesses struggling to keep their operations afloat.
This rough situation has also significantly affected the ebb and flow of trade, particularly from oil producing and exporting countries (OPEC), thus threatening to destabilize the global supply of crude oil and petroleum products which may lead to a surge in prices on the world market.
In his statement to the reporters at the sidelines of his visit to a fire-gutted school in Quezon City on Wednesday, June 18, President Ferdinand R. Marcos Jr. has reassured the public that the government is closely monitoring the firepower showdown between Iran and Israel.
The Chief Executive told the media that Department of Migrant Workers (DMW) Secretary Hans Leo Cacdac was on his way to Jordan to coordinate the evacuation process in the face of logistical issues including the shutdown of international airports.
The President said, “Some have asked to be evacuated out of Israel. Noong una, sa Iran, ayaw nila munang umalis. Pero ngayon, mayroon nang sinasabi na kailangan, natatakot na sila kaya nagpapatulong nang makalabas.”
He added, “Ang naging problema natin sa pag-evacuate sa kanila ay dahil sa giyera, maraming sarado na airport. Kaya naghahanap tayo ng ruta kung saan sila mailabas. But we have been able to do that.”
Despite the challenges brought about by the worsening situation in Asia’s arid region, the Chief Executive has allayed fears of families who have relatives that are working in the Middle East, assuring them that the government has identified safe passageways for their return to the country.
The government has not assessed the situation to have reached Alert Level 4, which would mandate compulsory repatriation.
On addressing the repercussions of Middle East tensions on domestic oil prices
Meanwhile, President Marcos also told reporters about the government’s readiness to extend financial assistance to various sectors that may be affected by a possible uptick in prices of petroleum products under the mounting crisis in the Middle East.
Such concerns arise from the possible bottlenecks in trade at the Strait of Hormuz, a vital aquatic artery for transporting products from Asia’s arid region to the rest of the world.
The President declared, “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 added, “Now we will have to do the same for those who are severely affected by any instability in the price of oil.”
At the height of the Covid 19-pandemic and in 2023, the government provided fuel subsidies to public utility vehicle (PUV) drivers to help them cope with rising fuel prices.
The Strait of Hormuz is a critical passageway for the global energy market, serving as a conduit for nearly one-third of the world’s seaborne oil and about one-fifth of global liquefied natural gas (LNG) shipments.
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