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Overseas news
Iran has reportedly agreed to reopen the Strait of Hormuz 30 days after reaching a peace deal with the US. This was according to a source who spoke to Japanese news organization Nikkei.
The report stated Iran pledged to clear mines, waive transit fees, extend the ceasefire, and begin nuclear talks.
Optimism over a potential US-Iran peace deal led to a 7% decline in oil prices on Monday. This happened despite both sides downplaying the possibility of an imminent breakthrough.
If realized, lasting peace could bring relief to global markets, businesses, and consumers that have been affected by the conflict-driven rise in the prices of fuel and goods.
Local developments
Domestic trade in goods fell by nearly 20% in value and over 35% in volume in Q1 2026 versus the same period last year. This was according to a preliminary data from the Philippine Statistic Authority’s (PSA) Commodity Flow Survey.
The decline in local trade comes amid weaker economic growth, supply chain disruptions, and lower consumer and business spending.
Meanwhile, the Philippine peso strengthened against the dollar on Monday, closing at P61.465 per US dollar. Investor sentiment improved as global oil prices eased following signs of a potential US-Iran deal.
Further, the Philippines’ external debt servicing rose 31.5% year-on-year to reach $2.127 billion as of February 2026. This was driven by higher principal payments on foreign loans, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).
Debt servicing refers to the money needed for paying the principal and interest on a loan for a certain period. When interest rates aren’t fixed for the entire term, the debt servicing can change significantly.
The latest news is mixed, though a possible US-Iran peace deal brings optimism. You may want to stay tuned for more concrete developments before making big changes to your portfolio.
