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Assessing the Impact of the 2026 Oil Shock on the Philippine Construction and Engineering Industry Amid US-Israel-Iran Geopolitical Tensions
Subject area: Science,Engineering and Technology · Area of research: Engineering Management
DOI: https://doi.org/10.64388/IREV9I12-1718616
Abstract
The global construction industry is highly sensitive to energy market fluctuations, as highlighted by the 2026 geopolitical conflict impacting oil prices. The Philippines, being a net oil importer, experienced severe economic challenges due to rising crude oil prices beyond $100 per barrel, affecting industrial operations. This study explores the effects of the 2026 oil shock on the Philippine construction and engineering sectors, utilizing a quantitative-descriptive research design complemented by qualitative analysis. Data from 80 professionals in engineering and construction reveals that 96.25% believe the oil shock inflated project costs due to increased fuel expenses and budget inaccuracies. The study identifies oil price volatility as a critical external factor influencing operational challenges such as material cost hikes, logistics expenses, and supply chain disruptions, resulting in budget overruns and resource constraints. Although some organizations implemented risk management and procurement strategies, their effectiveness was limited by regulatory constraints and financial pressures. The study recommends adopting adaptive engineering management practices and dynamic cost control systems to enhance resilience against future economic disruptions.
Keywords
2026 Oil Shock, Engineering Management, Logistics and Supply Chain Disruption, Material Cost Escalation, Philippine Construction Industry.
How to cite this paper
@article{1718616,
author = {Cristel Lyka P. Abalos, Joseph Paolo A. Geronimo, Lorinda E. Pascual, Joefil C. Jocson},
title = {Assessing the Impact of the 2026 Oil Shock on the Philippine Construction and Engineering Industry Amid US-Israel-Iran Geopolitical Tensions},
journal = {Iconic Research And Engineering Journals},
year = {2026},
volume = {9},
number = {12},
pages = {346-374},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1718616.pdf},
abstract = {The global construction industry is highly sensitive to energy market fluctuations, as highlighted by the 2026 geopolitical conflict impacting oil prices. The Philippines, being a net oil importer, experienced severe economic challenges due to rising crude oil prices beyond $100 per barrel, affecting industrial operations. This study explores the effects of the 2026 oil shock on the Philippine construction and engineering sectors, utilizing a quantitative-descriptive research design complemented by qualitative analysis. Data from 80 professionals in engineering and construction reveals that 96.25% believe the oil shock inflated project costs due to increased fuel expenses and budget inaccuracies. The study identifies oil price volatility as a critical external factor influencing operational challenges such as material cost hikes, logistics expenses, and supply chain disruptions, resulting in budget overruns and resource constraints. Although some organizations implemented risk management and procurement strategies, their effectiveness was limited by regulatory constraints and financial pressures. The study recommends adopting adaptive engineering management practices and dynamic cost control systems to enhance resilience against future economic disruptions.},
keywords = {2026 Oil Shock, Engineering Management, Logistics and Supply Chain Disruption, Material Cost Escalation, Philippine Construction Industry.},
month = {June},
doi = {https://doi.org/10.64388/IREV9I12-1718616}
}