US-Iran peace pact seen easing logistics, transport costs – FPI

MANILA, Philippines – The Federation of Philippine Industries (FPI) said a US-Iran peace deal could ease pressure on Philippine businesses after months of conflict drove up transport and logistics costs.

“This is good news — cautiously good news,” FPI chairperson Elizabeth Lee said in a statement on Tuesday.

READ: Strait of Hormuz to reopen Friday under US-Iran deal – Trump

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“The US-Iran peace deal gives the Philippines breathing room — but it also exposed how vulnerable we remain compared with our ASEAN neighbors,” she added.

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The group said the Middle East conflict has raised energy costs and disrupted trade through the Strait of Hormuz, affecting the Philippines.

In March, President Marcos declared a national energy emergency to shield fuel and energy supplies from the US-Iran war’s impact.

“Other ASEAN (Association of Southeast Asian Nations) economies absorbed the shock better because they have deeper industrial bases,” Lee said.

According to Lee, the geopolitical development will lower oil and energy costs, strengthen the Philippine peso, and improve investor confidence.

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The group said that while the relief is not immediate, the direction is “clear and constructive.”

“With global oil prices now falling after the peace deal, the pressure that cascaded through logistics, cold chain, and transport will start to unwind,” she said.

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“Relief is coming — as long as the peace holds and supply routes stay open. This stability gives businesses the space we need to rebuild margins, restore predictability, and strengthen our footing,” she added.

Likewise, Lee said a stronger peso could lower costs for import-dependent manufacturers and raw material importers.

At the same time, the group added that investor confidence and foreign direct investment are likely to recover, albeit from a weakened base.

“But for the Philippines to fully capture the FDI upside, we need internal reform momentum,” FPI said.

The group said the government needs to accelerate the ease of doing business, tighten anti-smuggling operations, strangle corruption, and fully implement various policies, including the Tatak Pinoy Act and the CREATE MORE Act.

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“The peace deal resets the global backdrop; our job is to reset the Philippine investment story,” Lee said. /pai INQ