Coming at a fragile moment for the global economy, oil prices spiked following missile strikes by the United States military on selected Iranian nuclear facilities even as the outlook now hinges on how forcefully the Islamic Republic retaliate to the attacks.
Asian stocks were lower as traders digested the weekend’s events, with Iran threatening US bases in the Middle East as fears grow of an escalating conflict in the volatile region. If Iran decides to retaliate, observers say one of its options would be to seek to close the strategic Strait of Hormuz—which carries one-fifth of global oil output.
In the Philippines, the Philippine Stock Exchange index (PSEi) opened the trading week in the red with traders retreating amid the conflict arising between Israel and Iran. The benchmark PSEi slid by 0.62 percent, or 39.6 points, to 6,300.17.
According to analysts, the Philippine peso is expected to remain at the ₱57 level against the dollar this week due to worsening geopolitical concerns in the Middle East.
Data from the Bankers Association of the Philippines showed a halt in PSEi’s eight-day losing streak as it closed at ₱57.17 per dollar, rebounding by 28 centavos from its near three-month low finish of ₱57.45 in the previous week. Week on week, however, the peso dropped by 96 centavos from its ₱56.21 close last June 13.
Philippine Institute for Development Studies (PIDS) senior research fellow John Paolo R. Rivera stated in a Viber message that “the peso’s recovery today was driven by a softer dollar, improved global risk sentiment and a technical correction after recent weakness.”
Meanwhile, several progressive groups protested in Quezon City on Sunday, June 22, to denounce the US bombing of Iranian nuclear installations with the Bagong Alyansang Makabayan leading the demonstration along with Anakbayan and Kabataan party-list groups and the Alliance of Concerned Teachers (ACT) coalition among others who showed “solidarity with the people of Iran in resisting US-Israel aggression.”