BUSINESS groups on Tuesday welcomed news of a United States-Iran peace deal and said it should be taken as an opportunity to implement reforms that would allow the economy to better withstand another shock.
The peace deal, which will end months of conflict that has led to soaring energy prices, is expected to be signed this Friday in Switzerland. US President Donald Trump said the Strait of Hormuz, through which about a third of global oil trade passes, would be fully opened later this week. “This is good news — cautiously good news. The US-Iran peace deal gives the Philippines breathing room,” Federation of Philippine Industries Chairman Elizabeth Lee said in a statement. It would lower energy costs, boost the peso and provide an opportunity to lift investor confidence, she added. “Energy isn’t just another expense — it’s the cost that drives every other cost, especially in manufacturing,” Lee said. “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 added. A stronger peso, Lee continued, will mean cost relief for importers. As for investor confidence, she said: “We need to accelerate ease of doing business, tighten anti-smuggling operations, strangle corruption and fully implement our industrial policy tools — the Tatak Pinoy Act and Create More Act, which sharpens incentives and improves investor predictability.”“Our job now — as industry, as government, as a nation — is to use this window of restored stability to build an economy that can withstand the next shock.”Management Association of the Philippines President Donald Lim also welcomed the peace deal but warned that it should hold. “The US-Iran peace framework helps stabilize oil prices, inflation and investor sentiment — areas that directly affect Philippine businesses,” Lim told The Manila Times. “However, markets respond not to announcements but to certainty. Any breakdown in negotiations could quickly reverse these gains,” he added.“At a time when the global economy remains fragile, the Philippines cannot afford another geopolitical shock that raises costs, delays investments and slows growth.” The Department of Agriculture (DA), meanwhile, said the reopening of the Strait of Hormuz would provide much-needed relief to the domestic agriculture sector. “The reopening of the Strait of Hormuz will greatly help reduce the cost of inputs in the production and transport of agricultural commodities, especially now as we prepare for a new rice planting season,” Agriculture Secretary Francisco Tiu Laurel Jr. said. The DA said the reopening of Hormuz was welcome, especially as the country prepares for the wet season planting cycle and potential weather-related threats. The department previously warned that the war in the Middle East would lead to elevated production costs, reduced agriculture output and higher food prices. Tiu Laurel said the peace deal would allow them to direct their attention to other issues. “The expected cost reduction will be one concern less and will allow us to focus on El Niño,” he said. Tiu Laurel said the reopening of Hormuz would also facilitate smoother trade between the Philippines and the Middle East, benefiting exports including bananas and pineapples as well as processed foods like canned tuna, sardines, coconut products and snacks. “For Philippine agriculture, the reopening of Hormuz offers more than cheaper oil. It restores a vital trade artery, eases pressure on food producers and allows policymakers to focus on the next major challenge on the horizon: safeguarding food supply against El Niño,” the DA said. CHYNNA GRACE ONG AND GISELLE JORDAN
