Fuel shortages spread to five countries amid Iran conflict

On the 203rd day of the Iran conflict, five countries reported fuel shortages. Motorists faced long queues, key grades were rationed and pump prices rose. Private cars, public transport and commercial fleets were affected, and some local authorities set purchase limits to conserve supplies.

Officials reported the shortfalls deepened this week after maritime insurance costs rose, cargoes were delayed at ports and several fuel shipments were rerouted or canceled following repeated attacks on shipping and energy infrastructure. Traders and shipping brokers reported some carriers avoiding routes near the Gulf, which added transit time and increased shipping costs.

Transport ministries and energy companies prioritized supplies for hospitals, emergency services and public transport. Some governments imposed purchase caps at retail stations. A few states released fuel from strategic reserves and arranged emergency imports from alternative suppliers. Authorities sought expedited port clearances for energy shipments and looked for lower-cost insurance options to keep tankers operating.

Commuters in urban centres reported wait times at pumps of several hours. Small businesses that rely on diesel for deliveries and generators reported rising operating costs. Freight operators cut services on less profitable routes, and agricultural producers reported delays in receiving fuel for irrigation and harvesting equipment. Retail fuel prices rose where governments allowed adjustments, and black-market sales emerged in areas with strict rationing.

Shipping costs and insurance premiums increased, and banks tightened credit lines for oil traders working in the region, reducing the number of firms willing to finance and move refined products. Logistics firms reported longer transit times and higher premiums being passed down the supply chain, contributing to higher consumer prices for food and other goods in some markets. Scheduled refinery maintenance and existing local production shortfalls left some countries more exposed to the disruptions.

The shortages trace to repeated strikes on maritime traffic and energy facilities in a region that serves as a major conduit for global energy flows. Incidents that raise safety concerns for tankers or disrupt port operations can quickly reduce local fuel availability. Sanctions and financial restrictions tied to the conflict have complicated payments and trade documentation for fuel imports, adding administrative delays to physical bottlenecks.

Energy analysts expect steady supplies to return only if tanker routes become safer, trading conditions stabilize and alternative financing channels for fuel traders are secured. For now, affected governments are balancing the need to maintain critical services with measures intended to limit price shocks for consumers.