Manila Says Iran Assured Passage for Ships Carrying Energy for Philippines

Iran will allow vessels carrying energy for the Philippines and Philippine-flagged vessels to pass through the Strait of Hormuz, the Southeast Asian country's Department of Foreign Affairs (DFA) said Thursday.

In a phone call Thursday, Iranian Foreign Affairs Minister Abbas Araghchi assured Filipino counterpart Ma. Theresa P. Lazaro that "Iran will allow the safe, unhindered and expeditious passage through the Strait of Hormuz of Philippine-flagged vessels, energy sources and all Filipino seafarers", the DFA said in a statement on social media.

"Given that the Philippines imports the majority of its energy requirements from the Middle East, these assurances from Iran will greatly facilitate the steady delivery of critical oil and fertilizer supplies to the Philippines", the statement added.

"The call concluded with both sides reaffirming their commitment to maintaining excellent relations and achieving lasting peace through continued dialogue and diplomacy".

Saudi Arabia was the Philippines' top source of crude oil in 2024 accounting for 51.4 percent of 45.37 million barrels imported by the country, according to the latest annual energy statistics from the Philippine Department of Energy (DOE). The United Arab Emirates accounted for 30.9 percent, Iraq 13.4 percent and Qatar 1.1 percent.

For oil products, the Middle East, led by Qatar, accounted for 5.86 million barrels imported by the Philippines in 2024. The Philippines mostly bought petroleum products from South Korea, China and Southeast Asia, according to the DOE data.

Last week President Ferdinand Marcos Jr declared a one-year state of national energy emergency to boost and fast-track government efforts to mitigate the impact of the war in the Middle East.

The March 24 executive order cited "an imminent danger of a critically low energy supply".

On March 26 local news agency ABS-CBN said Marcos' office had confirmed the arrival of 700,000 barrels of Russian crude.

"We are stocking up and now in dialogue with other countries like India, Argentina, Canada and other countries that do not rely on the Middle East for their petroleum", Palace Press Officer Claire Castro said in a press briefing March 27, relaying information from DOE Secretary Sharon Garin.

On Monday the DOE said the Philippines has secured 1.042 million barrels or 165.68 million liters of diesel for delivery through April. The first shipment, 142,000 barrels from Japan, arrived last week, as announced earlier by the DOE.

"The remaining deliveries are set to arrive as follows: 300,000 barrels (47,700,000 liters) from Malaysia/Singapore - early April; 300,000 barrels (47,700,000 liters) from North Asia/India - mid-April; 300,000 barrels (47,700,000 liters) from Oman/Singapore - end April", the statement said.

The total volume would be enough for 51 days, the Presidential Communications Office said separately.

"[T]he DOE will continue to pursue all measures, through international diplomacy, close coordination with concerned government entities, and sustain monitoring of the domestic market to help preserve fuel availability and cushion the country from external supply shocks", the statement said.

The DOE has also activated a PHP 20 billion ($330.92 million) emergency fund to buy refined oil products and liquefied petroleum gas, as well as build up fuel stocks.

"Under the program, the target volume is set at up to 2 million barrels of fuel, intended to support domestic requirements and mitigate the impact of global supply fluctuations", the DOE said in a press release March 26.

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