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International fuel shortage

Iran War Closes Strait of Hormuz

Analysis based on 11 articles · First reported May 12, 2026 · Last updated May 12, 2026

Sentiment
-70
Attention
6
Articles
11
Market Impact
General
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The closure of the Strait of Hormuz due to the Iran war has led to a severe bunker fuel shortage, causing prices to spike in hubs like Singapore. This will result in higher shipping costs, which are expected to be passed on to consumers, impacting global supply chains and increasing consumer prices across various sectors.

shipping energy logistics

The global maritime industry is facing a significant bunker fuel shortage due to the Iran war's closure of the Strait of Hormuz, a critical shipping lane. This disruption has choked off the supply of bunker fuel, a heavy crude oil product essential for powering 80% of globally traded goods. Singapore, the world's largest refueling hub for bunker fuel, is experiencing dwindling reserves and a price surge from $500 to over $800 per metric ton. Shipping companies are responding by reducing vessel speeds, revising schedules, and investing in dual-fuel capable ships that can run on alternatives like Liquefied natural gas. Experts from Eurasia and Aon (company) warn of widespread impacts, including higher shipping costs, increased consumer prices, and potential business failures. Asia, heavily reliant on Middle Eastern oil, has adopted 'energy triage' measures such as increasing coal use and buying more crude oil from Russia. The crisis is also accelerating interest in greener fuels, as rising fossil fuel prices narrow the cost gap for these alternatives.

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Håkan Agnevall of Wärtsilä highlights the existing technology for lower-emitting fuels and the potential for the conflict to accelerate the shift to greener alternatives.
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The Caravel Group, through its CEO Angad Banga, is investing in dual-fuel capable ships to adapt to the volatile fuel environment.
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AGF Management Limited, owned by The Caravel Group, is managing the construction of dual-fuel capable ships.
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Clarksons Research reports a global slowdown in the average speed of bulk carriers and container ships since the war began.
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June Goh, an oil analyst for Sparta Commodities, notes that shipping companies are currently absorbing costs but may soon pass them to customers.
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