Iran-Israel tensions may hike PH inflation

Economic analysts predict that escalating geopolitical tensions between Iran and Israel, alongside U.S.-led bombings, could lead to increased inflation and moderate growth in consumption activities in the Philippines.

The attacks targeted Iran's nuclear sites in Fordo, Natanz, and Isfahan, with U.S. President Donald Trump confirming their successful deployment in coordination with Israeli officials.

Concerns are raised about potential disruptions in global oil supply, particularly if the Strait of Hormuz, a critical shipping route, becomes compromised.

The Philippines imports over 80 percent of its crude oil from the Middle East, making it vulnerable to supply disruptions.

Increased fuel costs are expected to raise transportation and production expenses, consequently driving up the prices of goods and services.

Despite these concerns, Bangko Sentral ng Pilipinas Deputy Governor Zeno Abenoja stated that overall inflation for the year might slow to 1.6 percent from 2.4 percent, citing increased OPEC production and weaker global fuel demand.