DOE: Safe Passage in Strait of Hormuz is Risk Management, Won't Immediately Bring Down Fuel Prices

The recent agreement allowing Philippine vessels safe passage through the Strait of Hormuz is a win, but it won't solve the Philippines' energy crisis.

Apr. 10, 2026 at 3:11am

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A geometric abstract illustration composed of bold, angular shapes in shades of blue, red, and yellow, conceptually representing the complex and fragile nature of global energy systems and the challenges of energy security.The Strait of Hormuz deal offers a temporary reprieve, but the Philippines' energy future remains vulnerable to global market forces.NYC Today

The Strait of Hormuz deal is a diplomatic triumph that secures safe passage for Philippine energy supplies through a critical global chokepoint. However, Energy Secretary Sharon Garin cautions that this 'risk management' approach won't immediately bring down fuel prices in the Philippines, which are projected to soar to P170 per liter for diesel and P120 for gasoline. The disconnect between geopolitical wins and everyday realities highlights the Philippines' vulnerability to global oil market volatility and the deeper challenges of energy security in a fragmented world.

Why it matters

The Strait of Hormuz deal is a microcosm of a larger trend - countries scrambling to secure their energy supplies in an increasingly unstable global landscape. While a diplomatic win, it doesn't address the structural issues in the Philippines' energy sector, such as overreliance on imports and lack of domestic production. This raises questions about what true energy security means in 2026 and whether temporary fixes are enough to build resilience.

The details

The recent agreement between the Philippines and Iran allows Philippine vessels safe passage through the Strait of Hormuz, one of the world's most critical energy chokepoints. Energy Secretary Sharon Garin described this as 'risk management' in a volatile geopolitical environment. However, despite this diplomatic triumph, fuel prices in the Philippines are still projected to skyrocket, with diesel reaching P170 per liter and gasoline P120 per liter. This disconnect between geopolitical wins and everyday realities highlights the Philippines' vulnerability to global oil market forces, which are largely beyond its control.

  • The Strait of Hormuz deal was recently negotiated between the Philippines and Iran.
  • Fuel prices in the Philippines are projected to surge to P170 per liter for diesel and P120 per liter for gasoline.

The players

Sharon Garin

The Energy Secretary of the Philippines, who described the Strait of Hormuz deal as 'risk management' in a volatile geopolitical environment.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident

The takeaway

The Strait of Hormuz deal is a fragile victory that highlights the deeper challenges of energy security in a fragmented world. While a diplomatic win, it doesn't solve the Philippines' energy crisis or insulate the country from global oil market volatility. Ultimately, the Philippines needs bold, long-term solutions to build a more resilient energy future, beyond temporary fixes.