Manolo Pichardo warns escalation in the Middle East could destabilize the DR economy

The head of the Secretariat of International Relations of the Fuerza del Pueblo (FP) party, Manolo Pichardo, expressed this Monday his deep concern about the worsening of geopolitical tensions in the Middle East, warning that the instability in that strategic region could lead to an external clash with severe consequences for the economy of the Dominican Republic.

Pichardo explained that the current scenario should not be seen as an isolated conflict, but as a critical variable in global energy security. “We are facing a reconfiguration of the international order where any interruption in supply routes or the increase in the geopolitical risk premium is immediately transferred to the oil futures markets,” noted the former president of the Central American Parliament (Parlacen).

The political leader emphasized that, as the Dominican Republic is a net importer of hydrocarbons, the volatility in the prices of a barrel of crude oil (WTI and Brent) represents a direct threat to fiscal balance and the purchasing power of citizens.

“A sustained increase in oil prices not only puts pressure on our balance of payments, but also generates a domino effect that increases the cost of local production, transportation and, therefore, the products of the basic basket. The country could face levels of imported inflation that the current Government does not seem to have the capacity to cushion without sacrificing public investment,” warned Pichardo.

Pichardo urged Dominican authorities to observe the conflict under a technical lens and not just a diplomatic one. He maintained that the dependence on fossil fuels makes us vulnerable to events that occur thousands of kilometers away, which highlights the urgency of strengthening strategic reserves and accelerating the real energy transition.

“It’s not just about foreign policy, it’s about national security. Democratic stability is closely linked to price stability; therefore, Fuerza del Pueblo calls for constant monitoring of international indicators to design contingency plans that protect the most vulnerable sectors of Dominican society from a possible ‘oil shock’,” he concluded.