The ongoing conflict between Israel and Hamas is not expected to cause an increase in oil prices, according to the Department of Energy (DOE).
In an interview, Rino Abad, the Director of the Oil Management Bureau, stated that Israel and Palestine are not major oil exporters to the Philippines. Therefore, any supply disruptions in Israel would not affect the country’s oil market.
However, Abad cautioned that if Iran becomes involved in the conflict, there could be an immediate spike in oil prices. This is because neighboring countries in the Persian Gulf, such as Saudi Arabia, Kuwait, and Qatar, are the primary oil suppliers to the Philippines.
Abad emphasized that the key concern lies in potential supply issues in these countries. While Saudi Arabia, Kuwait, and Qatar are not active participants in the conflict, Iran has faced accusations of funding Hamas in the past, although their Supreme Leader has denied these claims.
Since Hamas initiated attacks on Israel on October 7, oil firms in the Philippines have implemented three consecutive weeks of pump price rollbacks. On October 8, Israel officially declared war on Hamas.
The Department of Foreign Affairs has condemned the reported killings of two Filipinos by Hamas in Israel, expressing concern over the safety of Filipino citizens in the region.
Source: PhilNews24 | October 11, 2023
