The climb beyond a strait: Financial burdens amid safe passage
Any individual who feels calm throughout the day, but suddenly remembers monthly bills understands the feeling of that peace saying goodbye. This is then replaced by anxiety, an unsettling emotion that has been escalating since the onset of the Middle East conflict.
The root cause of this feeling goes miles away, in the Strait of Hormuz. Lately, the media have been using terms such as “supply chains” and “geopolitics.” For us Filipinos, such words hit home. The pillars that hold our lives together—commutes, cooking, electricity, and other basic necessities—begin to break down.
On the bright side, there is light at the end of the tunnel. After diplomatic conversations with Iranian officials, the Department of Foreign Affairs received the green light for Philippine-flagged ships to navigate safely through the Strait—a diplomatic win worth celebrating. However, financial burdens persist, as the successful navigation through the Strait is only a surface-level solution. The costs of the journey go sky-high with the hidden wall of maritime insurance.
Prior to the crisis, it was a typical operational procedure for a ship to be insured. Now, the Strait of Hormuz is one of the most perilous places in the world. Premiums on “war-risk” have risen far above the ceiling, possibly 10 percent of a ship’s value. This makes a single journey through the Strait increasingly expensive. The harsh reality is that the hidden “war tax” imposed on oil and fuel remains until the crisis comes to a true ceasefire, despite the domestic government’s efforts to form diplomatic agreements with regional leaders to keep Philippine ships protected.
It’s understandable that one can scramble to understand current data received from the Asian Development Bank (ADB), such as how inflation lately reached a 20-month all-time high of 4.1 percent and how 98 percent of crude oil is sourced from the Middle East. Digging deeper, the real iceberg concerns several overseas Filipino workers (OFWs) living in high-risk areas and the nearly 5,000 Filipino sailors trudging through the Strait. They play an important role in helping the nation make ends meet amidst the crisis.
With the Strait remaining the most perilous path, an increase in oil prices is only the tip of the iceberg. Households long for calls from their OFW family members still in Riyadh or Dubai. More than the hurt experienced by our economy, the enduring crisis also impacts the volatility of remittances. Repatriation implies a huge dip in remittances since 17 to 18 percent of remittances come from the Middle East. According to ADB, the persistence of the crisis negatively impacts the lifestyle of OFWs and their families.
No one can control the screams, cries, or unprecedented off-tune jump scares of the crisis, but our internal reaction to the situation is what produces true strength. True security comes with the realization that getting through the Strait will not get easier anytime soon, and feeling the necessity of its passage less and less.
The proclamation of a national energy emergency last March 2026 is sobering. It’s time to introspect. Embodying and protecting the Filipino spirit by patronizing local energy projects and initiatives is one way to conquer the hidden obstacle.
Domestic patronization is one of the most authentic ways to act during the onset of a worldwide crisis. International and global affairs are beyond control, but each of us Filipinos can take the call to action and ensure each Filipino family is cared for through local support and implementation of more feasible policies.
Candisse Yuen,
candisse.yuen@student.ateneo.edu
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