Ships avoid Strait of Hormuz as Iran cranks up threats By Julian Lee, Weilun Soon and Alex Longley
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WAITING WHILE WAR IS WAGED Overseas Filipino Workers stay inside the OFW lounge at NAIA Terminal 3 waiting for announcements of their respective flights going to the Middle East. At least 23 international flights have been cancelled while three were diverted due to the exchange of airstrikes in the Middle East, the Civil Aviation Authority of the Philippines (CAAP) said Sunday, March 1. NONIE REYES
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IL and gas shipping remains largely paused in the Strait of Hormuz that links the oil-rich Persian Gulf to the open seas, as a regional conflict escalates and Iran cranks up threats to vessels transiting through the chokepoint. On Sunday, a trickle of vessels were moving out of the waterway, which is crucial for the flow of oil and gas, according to ship-tracking data, even if none appeared to be entering. A small oil tanker, which appears to be sanctioned
by the US for helping Iran export fuels, was targeted off Oman’s northern coast, though it was unclear who was behind the attack. Mohsen Rezaei, a member of the Expediency Discernment Council that advises Iran’s supreme leader, said on state TV that “no American ship is allowed to enter the Persian Gulf.” Multiple ships have reported a day earlier hearing radio broadcasts purporting to come from the Iranian navy announcing that transit through the waterway was banned, although no official communication was made. The Strait of Hormuz is a crucial chokepoint for energy markets
because a fifth of the world’s seaborne oil and liquefied natural gas typically passes through each day. It’s unclear how long the disruption may last, and some vessels are continuing to sail through, though far fewer than would be normal. Iran’s semi-official Tasnim news agency, describing the waterway as effectively shut, said on Saturday that the country’s Revolutionary Guard warned ships that transiting Hormuz is not safe. German container liner HapagLloyd AG subsequently said it is suspending transits through Hormuz due to its “official closure.” France’s CMA CGM SA, the
world’s third-largest container line, told vessels in the Persian Gulf to take shelter immediately and suspended passage through the Suez Canal. Traffic had already reduced significantly in the wake of the attacks, and Bloomberg reported earlier that tankers were piling up both inside and outside of the entrance into the strait. The US issued a warning to shipping that vessels in the region should stay 30 nautical miles away from its military assets. Japanese giant Nippon Yusen KK has told its fleet not to navigate Hormuz, while Greece told its See “Hormuz,” A2
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‘MIDEAST WAR DISRUPTS TRADE, ENERGY MARKETS’ www.businessmirror.com.ph
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Monday, March 2, 2026 Vol. 21 No. 141
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Oil prices seen to cause local inflation rates to hit ceiling
By Bless Aubrey Ogerio
HE Philippine Exporters Confederation Inc. (Philexport) warned on Sunday that the aftermath of the weekend’s attacks by the United States and Israel on Iran— and Iran’s countermoves like attacks on Middle East countries hosting US bases and restricting the Strait of Hormuz— has already disrupted airspace and logistics routes while fueling volatility in energy markets. These are developments that could ripple through international supply chains if hostilities intensify, the group said in a statement.
“These developments risk pushing up global inflation and weakening economic growth,” the group pointed out.
By Andrea E. San Juan
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Slower growth and higher costs could weigh on trade flows worldwide, it added. See “War,” A2
CEBU BIZ LEADERS OPTIMISTIC, BUT PUSHING URGENT REFORMS By Carmel Pedroza
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EBU CITY—Cebu’s business leaders remain largely optimistic about the future, but they are sending a clear message to government: meaningful, systemic reforms are urgently needed to make it easier to do business. Results of the latest CEO survey conducted by the Cebu Chamber of Commerce and Industry (CCCI) in partnership with Isla Lipana & Co./PwC Philippines, show that while confidence levels remain high, satisfaction with government services—both local and national—has declined sharply. The results of the survey, presented to the Cebu media on Friday, highlighted the call of business leaders for digitalization,
faster processes, and a governance-focused approach to ensure Cebu remains competitive in a rapidly shifting global landscape.
Survey reflects business sentiment
HELD from January 10 to February 11, 2026, the survey gathered responses from 107 CEOs and senior business leaders across Cebu, most of whom represent mediumsized enterprises with annual sales ranging from P15 million to P100 million. Now on its third run—following inaugural efforts in 2019 and a second round in 2023—the survey aims to shape strategies and inform the broader public about the state of Cebu’s business climate. See “Cebu biz,” A2
ESCALATION AFTER KHAMENEI’S DEATH Government supporters and clerics mourn in Tehran after state television announced the
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death of Ayatollah Ali Khamenei on Sunday, March 1, 2026, as a supporter raises his portrait during a gathering in the Iranian capital. The scenes of grief unfold against mounting fury from Iran’s leadership, which has vowed retaliation over US-Israeli strikes that state media say also killed senior commanders. Grief and anger ripple beyond Iran’s borders. Shiite Muslims protest in Srinagar, Indian-controlled Kashmir, denouncing the US and Israel. Demonstrations spread worldwide: activists rally near the White House in Washington—some opposing, others supporting the strikes—while South Korean protesters gather near the US Embassy in Seoul. In Bellevue, Washington, members of the Iranian diaspora stage a car rally responding to the US bombing of Iran. As officials trade threats and warnings, the public mourning and global protests underscore how the crisis has swiftly moved from the battlefield to the streets. AP PHOTOS
ERSISTENT oil price strength could raise the likelihood of inflation readings to hit the ceiling of the Bangko Sentral ng Pilipinas’ (BSP) target by the second half of this year, if not earlier, according to analysts. According to the latest inflation outlook of the Union Bank of the Philippines (UBP): “With rice deflation expected to fade and climate-related agricultural disruptions likely as the 3Q monsoon season approaches, persistent oil price strength would only tighten the path for inflation—raising the probability of readings near the upper bound of the BSP’s target by 2H26, if not earlier.” The bank said, however, that near-term inflation dynamics remain “supportive” despite rising uncertainties in the second half. It further explained that the headline 2-percent year-on-year print suggests that price pressures are beginning to normalize. “These readings remain well anchored within the BSP’s target range and do not threaten the low rate environment that continues to fuel the search for undervalued index names although the outlook for the second half is destined for the upper half of the BSP’s target range,” the UBP said. For his part, Jonathan Ravelas, senior adviser at Reyes Tacandong & Co. told the BusinessMirror that the main inflation risk right now is oil. “Any escalation in the Middle East—especially if it disrupts supply routes—raises global oil prices, which quickly feed into fuel, transport, electricity, and eventually food costs here at home,” Ravelas told this newspaper. He said hitting the upper end of the BSP’s 2 to 4 percent target is possible, but he noted that “breaching 4 percent is not my base case.” “That would likely require oil prices to spike sharply and stay elevated, or a significant peso weakening on top of that,” Ravelas explained. For now, the analyst said softer domestic demand and BSP “vigilance” should keep inflation See “Inflation,” A2
PESO EXCHANGE RATES n US 57.5540 n JAPAN 0.3687 n UK 77.6001 n HK 7.3570 n CHINA 8.4020 n SINGAPORE 45.5477 n AUSTRALIA 40.8864 n EU 67.9022 n KOREA 0.0402 n SAUDI ARABIA 15.3465 Source: BSP (February 27, 2026)