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Manila Times Business

Trump says Iran facing 'last chance before decapitation'

WASHINGTON — US President Donald Trump said Monday that negotiations with Iran were ongoing despite Tehran's denials and the Islamic Republic was facing a "last chance before decapitation." Trump, speaking to reporters at the White House, said he agreed to continue to pursue talks with Iran at the request of Saudi Arabia, the United Arab Emirates, Qatar and other countries. Iran's foreign ministry denied on Monday that negotiations with Washington were taking place, but Trump insisted they

Context & Analysis

Sudden shifts in US-Iran risk have repeatedly moved global energy markets, because the dispute touches nuclear policy, sanctions, and security competition across the Middle East. The key variable for investors is not just whether diplomacy succeeds, but how quickly traders price in disruption if channels weaken. Gulf states often act as informal stabilizers in such episodes: they depend on stable crude and gas flows, shipping routes, and regional trade links, so their commercial incentives point toward de-escalation even when official positions are ambiguous.

For Philippine businesses, the relevance is not abstract. The country depends on imported energy and petrochemical-linked inputs, so any jump in global oil or gas prices can quickly reach domestic fuel costs, freight charges, logistics, and eventually consumer goods. Transport-heavy firms, traders, manufacturers using plastic or chemical feedstocks, and aviation-sensitive services may feel pressure first. For households, the chain runs from pump prices to delivery fares, airfares, and the cost of imported food and materials. If inflation expectations firm up, the Bangko Sentral ng Pilipinas may find it harder to keep monetary policy easing if import-driven price pressures persist, while risk-off sentiment could weigh on the peso and equity markets.

Watch for three signals next. First, whether diplomatic signals improve or deteriorate, because that will determine how quickly oil traders price in disruption risk. Second, movement in shipping costs and insurance around Gulf routes, since even a limited conflict can raise the cost of moving goods before any physical supply interruption occurs. Third, local policy responses, including BSP commentary on imported inflation, fuel-price adjustments by energy companies, and any visible pass-through to retail prices. For investors, the key question is whether the episode remains contained or becomes a broader regional stress event that affects global growth, risk assets, and the Philippines’ cost of imported inputs.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: manilatimes.net

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