The remittances of overseas Filipino workers (OFW) might be substantially affected if the ongoing conflict between Israel and Iran spreads to the rest of the Middle East, a Palace official said on Thursday.

In a press briefing, Palace Press Officer Claire Castro said that according to Finance Undersecretary Alu Dorotan-Tiuseco, the conflict between the two countries which traded missiles for almost a week does not yet have a significant impact on OFW remittances.

"The impact on remittances remains limited for now, given the remittances from Israel and Iran amounted to 106.4 million U.S dollars in 2024 .03% of total remittances" Castro said, quoting Dorotan-Tiuseco.

However, Castro also noted that possible escalation of the conflict "that could include the rest of the Middle East will have a substantial effect on overall remittances."

"She noted that there might be an increase in the price of crude oil and affect house consumption and the economy growth prospect, because usually when crude oil price increases, the prices of goods in the market are also affected," Castro said, explaining the statement of Dorotan-Tiuseco.

Amid the continued conflict the Philippine government has not yet implemented mandatory repatriation for the two countries.

On the other hand, the Department of Migrant Workers (DMW), has advised OFWs to defer any unnecessary travel to Israel, Jordan, and Lebanon to avoid being caught in the rising tensions in the Middle East. Robina Asido/DMS