Rising Persian Gulf tensions push shipping costs, oil prices higher

Global energy markets are experiencing heightened volatility as regional conflicts intensify. Diesel futures have surged 17%, while shipping costs have risen amid concerns over potential disruptions to supply routes through the Persian Gulf, Nour reports.

The Strait of Hormuz, a vital chokepoint through which roughly 10% of the world’s diesel and 20% of aviation fuel is transported, has emerged as a key factor in market stability. Any threat to its navigation immediately impacts global fuel prices and inflation. Analysts warn that in the event of a full blockade, regional producers could maintain supplies for no more than 25 days, underscoring the strait’s strategic economic significance.

Amid ongoing US-Israel-Iran tensions, Iran has demonstrated its missile, drone, and naval capabilities. Over the past 48 hours, the Iranian Navy has established operational control over the strait, conducting surveillance and intercepting vessels, with reports of strikes on intruding ships. These actions serve as a clear deterrent to adversaries.

Experts emphasize that Iran’s ability to exert influence over the Strait of Hormuz functions as a “strategic weapon” with direct consequences for the global energy market. Any restriction or control of maritime traffic translates into immediate fluctuations in oil, diesel, and aviation fuel prices.

Prolonged instability in the region could place additional pressure on energy-consuming economies, elevate fuel costs, and complicate the strategic calculations of nations involved in the conflict.

By Vafa Guliyeva