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Overseas news
In the US, stock futures dropped and oil prices surged after US forces launched retaliatory strikes against Iranian targets. This followed an earlier attack on US warships that has significantly escalated the Middle East conflict.
Meanwhile, the United Arab Emirates (UAE) has reportedly utilized covert shipping tactics to move oil tankers through the Strait of Hormuz. This has allowed it to bypass regional monitoring efforts as global energy supply concerns continue to rise.
The current conflict in the region has strongly limited the global availability of oil while causing prices to surge. This has directly and indirectly affected prices of many goods and services around the world.
Also in the US, a trade court has declared President Donald Trump’s 10% global tariffs illegal, although the ruling issued only a narrow block. This left questions about the immediate future of US trade policy.
As the US is a major trade partner for many countries, the new tariffs levied were a source of much concern for companies and nations alike.
Local developments
The Philippine economy experienced a sharp slowdown as gross domestic product (GDP) growth fell to 2.8% year-on-year in the 1st quarter of 2026. The decline was attributed to the severe global oil price shock caused by the ongoing situation in the Middle East.
Also at the end of this year’s 1st quarter, the Philippines’ debt-to-GDP ratio climbed to 65.2%. Its highest level in 21 years, this figure underscores the growing fiscal pressure on the government.
GDP is a measure of how much a country produces in a given period, and its growth is representative of the economy’s performance. Comparing GDP to how much that country owes gives the debt-to-GDP ratio, which is seen as a reliable indicator of that country’s ability to pay its debt.
There are no signs that the oil prices will become stable in the near future. For now, you may want to continue your strategy while avoiding big decisions for your portfolio.
