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Overseas news
Oil prices climbed as US President Donald Trump said the reopening of the Strait of Hormuz is a very big priority for any ceasefire deal with Iran.
The Strait of Hormuz is a key oil transit point. Iran shut this passageway in response to US strikes, triggering a large oil supply disruption felt around the world.
Additionally, an airstrike in Tehran reportedly killed a top Iranian intelligence chief. This may further complicate diplomatic efforts to end the Middle East conflict.
Local developments
Inflation reached a 20-month high of 4.1% in March, surging from 2.4% in February. The latest figure also exceeded the government’s target range of 2 to 4% for the year.
When inflation rises faster than expected, the Bangko Sentral ng Pilipinas (BSP) may seek to manage it by raising interest rates or keeping them high.
Meanwhile, the peso saw a temporary boost, as optimism over a potential de-escalation in the Middle East led to a slight drop in the demand for the US dollar.
However, local pump prices continue to surge, with industry experts warning that diesel could top P170 per liter this week due to global supply shocks.
Product prices may increase further if fuel costs remain high for a long period since this important resource plays a big part in manufacturing and transporting goods.
As the global effects of the US-Iran conflict continue to be felt, you may want to remain cautious with your investing moves while keeping an eye on further developments.
