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The Iran war is sending shockwaves through Southeast Asian supply chains and energy costs, severely impacting the Philippines with rising oil prices and peso volatility. The Philippine Central Bank intervened to defend the peso, while finance officials discuss reassessing GDP and inflation due to oil prices exceeding $80.

Iran War's Economic Impact on Southeast Asia

The Iran war is significantly impacting Southeast Asian supply chains and energy costs. The Philippines, in particular, faces severe economic pressure due to rising international oil prices and increased peso volatility. The Philippine Central Bank (BSP) intervened in the market to defend the currency as the peso neared the key level of 60, indicating that global economic uncertainties stemming from the war are directly affecting the Philippine economy.

Philippine Policymakers' Response and Outlook

Philippine Finance Secretary Frederick Go stated that the government must reassess its gross domestic product (GDP) and inflation forecasts as oil prices surpass $80 per barrel. The Philippine government is implementing various policy measures to strengthen energy security and alleviate economic burdens, including fuel tax relief, biofuels reform, and boosting strategic oil reserves. Furthermore, the escalation of the Middle East situation, such as Iran's attacks on UAE energy infrastructure, is affecting Philippine power prices and liquefied natural gas (LNG) volatility, adding to the uncertainty for Philippine businesses.

*Source: YouTube: Bloomberg (2026-03-17)*

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