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euronews
Shipping fuel crunch raises fears of higher prices worldwide
The Iran war has led to the closure of the Strait of Hormuz, a critical chokepoint for global oil shipments. This has severely disrupted supplies of bunker fuel, the low-grade petroleum product that powers approximately 80% of global seaborne trade. Bunker fuel prices in Singapore, the world's largest refuelling hub, have surged from around $500 per metric tonne to over $800 per metric tonne. Shipping companies are responding by slowing vessel speeds and revising schedules to conserve fuel, while some invest in dual-fuel capable ships that can use alternatives like LNG. Analysts warn that these higher operating costs will likely be passed on to consumers in the form of higher prices for imported goods. The crisis highlights the vulnerability of global supply chains and is accelerating interest in green marine fuels, though production and infrastructure still lag.
Act nowConfidence: HighImmediate horizonExecution risk: High
Published 12 May 2026, 10:05 UTC4 min read
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Summary
TL;DR
- Bunker fuel powers about 80% of global seaborne trade.
- Singapore bunker fuel prices rose from $500 to over $800 per metric tonne.
- Iran war led to Strait of Hormuz closure, disrupting supplies.
- Shipping vessels have slowed globally by around 2% since Feb 28.
- Over 890 LNG-powered vessels are in operation, but infrastructure lags.
- Analysts expect shipping cost increases to be passed to consumers.
- The Iran war costs shipping industry ~€340 million per day.
Interesting facts
- Bunker fuel is a low-grade sludge-like byproduct of crude oil refining.