Philippines Declares National Energy Emergency Amid U.S.-Israel-Iran War Fuel Crisis

The Philippines, heavily dependent on oil imports, faces acute vulnerabilities that could ripple through global markets.

• March 25, 2026: The Philippines declared a national energy emergency due to fuel shortages linked to the U.S.-Israel-Iran war.
• Fuel prices doubled in early March, leading to public unrest and government action.
• Executive Order No. 110 was signed, enabling extraordinary procurement powers and rationing protocols.

• Strait of Hormuz closure: The ongoing conflict has led to a blockade of this critical chokepoint, affecting 20% of global oil transit.
• Philippine oil dependency: The nation imports 98% of its crude oil from Gulf states, making it particularly vulnerable to global supply disruptions.
• Inflation pressures: The doubling of fuel prices has exacerbated existing economic challenges, including domestic inflation and energy import dependencies.

The declaration of a national energy emergency in the Philippines marks a significant response to a geopolitical crisis that has immediate and far-reaching implications. The U.S.-Israel-Iran war, which began on February 28, 2026, triggered a series of events that directly impacted the Philippines' energy security. The closure of the Strait of Hormuz, a vital artery for oil transport, has disrupted the flow of crude oil, leading to a dramatic increase in global oil prices—prices that have doubled in the Philippines.

As President Ferdinand Marcos Jr. invoked Executive Order No. 110, the urgency of the situation became clear. With only 45 days of fuel stockpiles remaining, the government took extraordinary measures to procure fuel directly and implement rationing protocols. This emergency declaration is not just a reactive measure; it reflects a deeper vulnerability in the Philippines' energy infrastructure, which is heavily reliant on imports from the Gulf region.

The implications of this energy emergency extend beyond immediate fuel shortages. The transport sector, already strained by rising costs, has seen unrest, with labor groups threatening strikes and demanding government intervention. The government's response has included a four-day workweek for public employees and financial subsidies for transport drivers, highlighting the socio-economic impact of the crisis.

Moreover, the emergency has prompted the Philippines to seek alternative suppliers, including Russia, to mitigate the effects of the conflict. This shift in procurement strategy could reshape the country's energy landscape and its geopolitical alliances, as it navigates the complexities of global energy markets.

The situation is further complicated by the indirect effects felt in regions like Dubai, where residents enjoy subsidized petrol prices. The contrast in energy pricing between the UAE and the Philippines underscores the varying impacts of global oil price fluctuations, with potential ripple effects on aviation fuel costs and the prices of imported goods.

• Transport sector workers: Facing rising fuel costs and potential strikes.
• Public employees: Adjusted work schedules and potential wage impacts.
• Consumers: Experiencing higher prices for goods and services due to increased transportation costs.
• Businesses: Particularly those reliant on transport and logistics, facing rising operational costs.

• Fuel price trends: Monitor how global oil prices fluctuate and their impact on local prices in the Philippines.
• Government policy changes: Watch for further measures from the Philippine government to address the energy crisis, including potential negotiations with alternative suppliers.
• Public sentiment: Keep an eye on protests and labor actions, which could influence government responses and policy directions.