Global fuel crisis deepens as Strait of Hormuz remains blocked

Rising fuel prices are being felt far beyond the Strait of Hormuz, where Iran has obstructed the passage of oil tankers carrying fuel for the global market, CNN reports.

In Australia, diesel is being distributed in limited quantities to farmers in Western Australia due to supply issues, which some experts say are driven more by panic buying in cities than by shortages from the Middle East.

Steve McGuire, President of the Western Australian Farmers Association, told CNN that farmers need diesel to plant cereal crops before mid-May, when rains make fields too muddy for heavy machinery. “There must be enough fuel. We just need assurance that it will arrive on time,” he said.

Energy Minister Chris Bowen noted that while farmer demand for diesel has surged, there is no need to panic, as stockpiles remain as large as before the conflict.

In New Zealand, panic buying has created fuel queues, and national carrier Air New Zealand said on Tuesday that “unprecedented volatility” in the global jet fuel market has forced it to revise forecasts for the year. The airline has already raised prices on some routes and warned that ongoing conflict may require adjustments to its route network and schedule.

Fuel price increases are also raising concerns in Vietnam, where higher airfare could reduce tourism demand, a major source of revenue.

Meanwhile, Pakistan has announced a series of austerity measures to “protect the population,” including cutting fuel consumption in government agencies and moving schools to online learning.