2026 Iran war fuel crisis

The 2026 Iran war caused immediate volatility in energy markets, with Brent crude oil prices surging 10–13% to around $80–82 per barrel by 2 March 2026. The conflict has caused the restriction of nearly all traffic through the Strait of Hormuz, leading to what the International Energy Agency has characterised as the "largest supply disruption in the history of the global oil market". The head of the IEA described the situation caused by the war as the "greatest global energy security challenge in history". Iran's closure of the Strait of Hormuz disrupted 20% of global oil supplies and significant liquefied natural gas (LNG) volumes. Analysts have forecast that prices could reach $100 per barrel if disruptions persisted, potentially adding 0.8% to global inflation. Even after Iran and the United States announced a ceasefire on 8 April, ship traffic through the Strait of Hormuz remained far below pre-war levels. Exports from the region have been typically going to Asian countries, with China, India, Japan, and South Korea accounting for 75% of oil and 59% of LNG exports. However, Singapore and Taiwan depend more on Qatari LNG, while Pakistan and Bangladesh are more price sensitive. Qatari state-owned oil and gas company QatarEnergy announced on 3 March that it was declaring Force Majeure on its contracts with buyers, and internal sources, according to Reuters, said that it would soon be shutting down gas liquefication, as LNG tankers could not leave the Gulf, and that restarting it would take weeks. These announcements caused increases in world gas prices, which analysts said was a part of the Iranian Government's plan to apply pressure on the world to stop the war. On 6 March, Qatar warned that if the war continues, other Gulf energy producers may be forced to halt exports and declare Force Majeure. Also on 6 March, it was reported that according to satellite imagery analysis by both Bloomberg and the Energy Economics and Society Research Institute in Tokyo, that Ras Laffan, the main gas facility in Qatar, appears not to have been damaged before the "unprecedented shutdown" which sent fuel prices higher. The United States, buffered by domestic production, faced less direct impact but saw petrol prices rise 5–10 cents per gallon daily. On 18 March, Iran hit Qatar's inactive Ras Laffan Industrial City LNG complex, causing a 17% reduction in Qatar's LNG production capacity. The damages from this attack would take 3–5 years to fix. Consequently, LNG spot prices in Asia increased by over 140 %. The impacts of the conflict are similar to the 1970s energy crisis, including acute supply shortages, currency volatility, inflation, and heightened risks of stagflation and recession. Countries such as Australia and India have more sufficient reserves but face challenges with panic buying. Economies most reliant on the strait for energy imports are in Asia, with Europe also viewing the strait as vital for its energy security. The initial disruption of petroleum is expected to affect Asia the most, but Europe is likely to be hit hard in the medium-to-long term, and the UK is expected to be the worst-hit major economy. The British think tank The Food Policy Institute has warned of long-term increases in food prices due to disruption in fuel and fertiliser markets. The Strait of Hormuz is central to the global fertiliser trade. Over 30 per cent of global urea, which is widely used and produced from natural gasis exported from Gulf countries through the Strait. Much of the cost of producing some foods, including corn and wheat, is in the cost of fertiliser, and this cost, along with rising energy costs, makes basic food production very expensive. Much of the Gulf states' food is importedfor example, over 90 per cent in Qatar. These factors have led to fears of food insecurity not only in Gulf states, but around the world. As of 28 March, analysts fear that another hard oil crisis is unfolding that is expected to be very decisive to the global economy. Airlines Airlines are being affected by the shortage of jet fuel in parts of Asia and Oceania. Many airlines in southeast Asia and Oceania are either adding surcharges to fares or cancelling flights or routes. Australia, which sources most of its jet fuel from China, followed by Singapore and South Korea, has 30 days' worth of jet fuel held in reserve. South Korea makes the refined product and exports it around the region, but it relies mostly on crude arriving via the Gulf, so it is considering limiting its exports. Korean Air is the country's third airline to enter "emergency mode", at this point focusing only on internal cost-reduction measures. == Africa ==

Algeria Algeria is an oil and natural gas producer, and one of the European Union's largest suppliers of LNG. It has entered talks with Spain and Italy, as well as fielding enquiries from other countries, including Vietnam. It could benefit economically. Egypt Egypt relies on imported oil, so the government has introduced measures to keep fuel usage down, including the mandatory closure of retail businesses at 9pm for a month, dimming street lights and roadside advertisements. It has slowed down some large government projects, and increased the price of both petrol and public transport fares. Non-essential workers have been ordered to work from home one day per week. In Ethiopia, security institutions have been prioritised, along with, major government projects, key industries, and essential goods production. There are fuel restrictions, and petrol stations are prioritising public transport. Fuel supplies to the Tigray Region have been completely suspended. Ghana Ghana, which has limited refining capacity, relies on imported refined products, but is supplied by a range of producers, including Russia. This resulted in public transport operators hiking their fares by roughly 25% dependent on various factors. These actions are expected to raise inflation and increase prices for basic goods and important services. Mauritius Mauritius is dependent on oil imports for generating power, and, after a shipment of oil had not arrived as scheduled on 30 March, only 21 days of stock remained in the country. The government arranged for more expensive alternative fuel to be shipped from Singapore, and imposed restrictions to reduce wastage of fuel. Namibia The Namibian Government reduced fuel levies by 50% for at least three months, using its National Energy Fund to stabilise prices until the end of June. Gas and oil exploration continues in the country, which expects to start producing oil by 2030. The South African Government has said that there was no shortage of fuel in the country, but prices have increased and some petrol stations have introduced their own rationing of diesel. With more traffic potentially taking the route around the Cape of Good Hope, and ships needing to fuel along the African coast, some ports such as Walvis Bay, Cape Town, and Durban may come under increased pressure, but also benefit from the diversion. Uganda At the end of March, Uganda only had a few weeks' worth of stock. South Sudan South Sudan has large oil reserves, but most of it is exported and it relies on imports for refined products. Because the country generates 96% of its electricity from oil, the government has started rationing electricity in the capital, Juba, which affects businesses, and rolling power cuts are expected to continue. Zimbabwe Zimbabwe has announced plans to scrap some taxes on fuel imports, which rose 40% in under a month. It has increased the amount of ethanol in its petrol from 5% to 20%. == Americas ==

North America April 7 2026 Fuel prices across North America have gone up significantly, beginning in early March, due to the market conditions shifting rapidly as the crisis continues. Liquefied natural gas prices have largely remained the same since the beginning of the energy crisis due to the lack of connectivity in the North American liquefied natural gas market, with minimal pipelines and export points. Gas prices have risen $1.16 a gallon in the United States since the start of the war, with prices expected to hit $5.00 a gallon if the Strait of Hormuz is not opened by Mid-April. In Canada, gas prices have risen approximately 30 percent from March to April. Jet fuel in North America has spiked 95 percent since the war began, causing multiple airlines to raise prices for checked baggage. Shipping services, such as the United States Postal Service, Amazon, and FedEx implemented fuel surcharges. The U.S. benefits from the surging oil prices as it is an energy powerhouse. On April 2026 U.S. exports of crude and petroleum products rose to nearly 12.9 million barrels a day. South America == Asia ==

Asian countries are the primary destination for crude oil from the Gulf, with most of it travelling via the Strait of Hormuz. In 2024, around 84 per cent of the crude oil and 83 per cent of LNG passing through the Strait went to Asia; nearly 70 per cent of the oil went to China, India, Japan, and South Korea. Governments and businesses across the region have been imposing measures to reduce the impact of the fuel crisis, and among the worst hit countries in the region include Pakistan, Bangladesh, and Vietnam. Bangladesh , Bangladesh Bangladesh is among the worst hit economies and is projected to have a severe impact on GDP growth inducing recession-like conditions. There have been fears of unrest due to the fuel crisis. Universities were closed in advance for the upcoming Eid al-Fitr holidays in order to conserve electricity and fuel. All shopping centres and commercial establishments have also been directed to shut down by 8.00 pm. This was later revised to 6 pm, before being increased to 7 pm and extended the restrictions to cultural events. Bangladesh relies on coal for much of its power, and has ramped up power generation from coal as well as importing more power created from coal. China China has been estimated by various sources to hold around 900 million to 1.4 billion barrels in its oil reserves. Due to the crisis, there were long queues at petrol stations in multiple Chinese cities. The Chinese government has reduced its planned fuel price hikes. China is a major oil refiner and exporter of petroleum products. On 5 March, major Chinese refiners, including China Petroleum & Chemical (Sinopec) and Rongsheng Petrochemical Co Ltd, were ordered by the government to stop accepting new fuel export contracts. Jet fuel refuelling for international flights and supplies to Hong Kong and Macau are exempt from this guidance. India India imports around half of its crude oil from Middle Eastern countries. On 27 March, the Indian government reduced excise duties on petrol and diesel by per litre to keep fuel prices from rising. Unfounded panic about shortages led to people forming long queues for petrol. Indian refiners started buying petroleum from Russia as the war disrupted supplies from the Middle East. To ensure domestic availability of fuel, the government raised export duties to per litre on diesel and to per litre on aviation fuel. It was the first fuel to be affected by the crisis, leading to long queues and delayed deliveries. Many people are using fuels like kerosene, coal and wood as stopgap measures. In the month of March 2026, India installed piped gas connections to 580,000 new households. Piped gas in India is mainly sourced from domestic gas fields, therefore its supply was unaffected by the war. Nearly 75% of electricity in India is generated from coal. India plans to increase coal power to meet high energy demands in the summer amid the oil and gas crisis. However, the impacts of the oil supply disruption due to the strait closure were partly mitigated by its large stockpiles. On 16 March, the Government of Japan started releasing 80 million barrels of oil, equivalent to 15 days of domestic demand, from its strategic reserves. Myanmar Myanmar, which has experienced civil war since 2021, has restricted private vehicle use to alternate days, and there are long queues at petrol stations. Philippines The Philippines declared a state of emergency on 24 March due to a concurrent strike by transport workers, and government offices in the Philippines are working only four days per week. The government froze diesel prices at 29.94 THB per litre in the first 15 days of the crisis, and has directed people to raise their air-conditioning temperatures and reduce their outer clothing, to reduce energy consumption, and employees of all government agencies are working from home. Phipat Ratchakitprakarn, Deputy Prime Minister of Thailand and co-owner of PTG Energy (branded as PT), one of the largest oil companies in Thailand, was assigned by Anutin Charnvirakul, Prime Minister of Thailand to control and mitigate the impact of fuel crisis in Thailand. He has been criticised by Thai citizens for his failure to manage the impact, and the "Ban PT" movement has gained traction across the internet. In Pathum Thani Province, north of Bangkok, the local Provincial Administrative Organization (PAO) has terminated its 4.45 satang per litre (Equivalent to 0.445 THB) fuel dispenser tax for 3 months, in 317 stations across the province. Normally, this tax generates 4 million THB per month for the PAO. By this measure the PAO hopes to reduce fuel costs for the residents of Pathum Thani Province, especially for farmers. On 3 April, Ruthaphon Naowarat, Minister of Justice, stated in CCSA Press Conference that the Ministry of Justice had detected 57 million litres of fuel missing from 217 million litres transported by sea to six oil depots in Surat Thani province, only 160 million litres arrived at destination. This has created controversies regarding government responsibilities. On 4 April, Bangchak Corporation, the third largest oil company in Thailand with around 2200 petrol stations nationwide, announced the "Fry to Fly" Program, which offers customers to exchange 2 litres of used cooking oil for 1 litre of diesel fuel or petrol (up to 20 litres of cooking oil per person) at 15 stations across the Bangkok Metropolitan Region. This program reduces customers' fuel costs and allows Bangchak to use the used cooking oil to produce sustainable aviation fuel (SAF). The program will be in effect from 6 to 30 April. On 8 April, the Energy Policy Administration Committee announced on the Royal Gazette of Thailand that diesel prices would be cut at the refinery level by 2 THB per litre, aiming to reduce fuel costs and cost of living for Thai citizens. This reduction includes Diesel B0, Diesel B7 and Diesel B20 blends, effective from 9 April. This resulted in diesel fuel prices dropping from 50.54 THB per litre on 7 April, to 48.40 THB per litre on 9 April. On 11 April prices dropped to 44.40 THB per litre for normal diesel and to 37.40 THB per litre for Diesel B20. Vietnam Vietnam is among the most fragile of South East Asian countries due to low energy security, relying on countries such as China and Thailand for petroleum imports. Vietnam is among the worst hit in South East Asia, with only other parts of the former French Indochina facing a worse situation. The economic impact of the fuel crisis is expected to slow Vietnam's economic growth. The fuel crisis has had a widespread impact on Vietnamese society as people change habits and find new ways of production. Gig workers were espeically hard hit by the doubling price of fuel. The government of Vietnam has abolished some fuel levies until mid-April, but fuel prices are still way above what they were before the war. Increased shipping costs for local businesses have hurt them economically, with customers dropping off. == Europe ==

Primarily through the suspension of Qatari liquefied natural gas (LNG) and the closure of the Strait of Hormuz, several publications including the BBC, PBS, Deutsche Welle, Euronews, Financial Times and Bruegel, along with banks and think thanks, have projected that the continent will enter an energy crisis in 2026 similar to the 2022 energy crisis that followed the War in Ukraine. The conflict coincided with historically low European gas storage levelsestimated at just 30% capacity following a harsh 2025–2026 wintercausing Dutch TTF gas benchmarks to nearly double to over €60/MWh by mid-March. On 26 March, the European Commission advised its member states to fill their gas storages early to avoid price spikes later in the year. After the Qatari Ministry of Defence announced on 2 March that two Iranian drones attacked Qatari gas facilities, followed closely by an announcement from QatarEnergy that all gas production in the country had been halted, European natural gas prices nearly doubled. This raised concerns over energy security and fertiliser costs. EU natural gas prices decreased again to a less-high €48/MWh on Wednesday 4 March. The Iran conflict also bolstered the necessity for renewable energy, as solar and wind power can reduce vulnerability to external supply and decentralised power generation that offers greater autonomy from global energy markets. With fluctuating oil prices, renewable energy has become significantly more cost-competitive. Shell plc's CEO warned that Europe could face shortages of fuel by April. British supermarket chain Asda warned that it was already facing shortages of fuel at their fuel stations. In addition to broader fuel supply disruptions, reports in April 2026 indicated significant impacts on global energy and aviation markets linked to tensions in the Strait of Hormuz during the Iran–United States conflict. Restricted maritime traffic was reported to have contributed to supply constraints in oil and jet fuel, affecting global energy flows and increasing market volatility. The disruption contributed to sharp increases in global energy prices. Reports indicated that oil prices rose above 100 USD per barrel, while jet fuel prices increased significantly, in some cases more than doubling compared to the previous month. European markets were identified as particularly vulnerable, with concerns raised over potential fuel shortages within weeks if supply conditions did not stabilise. Industry groups and analysts warned that continued disruption could lead to operational challenges at European airports, including potential flight cancellations and capacity constraints. The International Air Transport Association (IATA) noted that even in the event of a reopening of the Strait of Hormuz, recovery in jet fuel supply could take months due to persistent constraints in refining capacity and logistics across the region. In response to the rising energy prices, the European Central Bank and the Bank of England left interest rates unchanged. Germany On April 13, the German government announced tax cuts for petrol and diesel fuel for two months in response to rising prices, generating critics from some economists. Ireland On 7 April, a series of protests against rising fuel prices began across major road networks, cities and ports in The Republic of Ireland. The protests continued until 14 April also causing a vote of no confidence in its government. Slovenia On 23 March, Slovenia became the first EU country since the start of the crisis to introduce fuel rationing. Fuel purchases were limited to 50 litres per day for private motorists and 200 litres per day for businesses and farmers. This measure was enacted to curb drivers from neighbouring countries such as Austria taking advantage of lower fuel prices in Slovenia. United Kingdom Shipping disruption contributed to volatility in UK energy markets, with analysts warning that wholesale gas price increases could raise household energy bills and expose the country's reliance on global fuel markets. The situation also renewed political debate over the role of domestic production in the North Sea, including potential reforms to the UK's Energy Profits Levy (windfall tax) on oil and gas producers and the future of investment in the sector. However, analysts noted that additional drilling in the North Sea would be unlikely to significantly reduce UK energy bills in the short term, as most oil and gas produced there is sold on international markets at global prices. == Middle East ==

According to the International Energy Agency (IEA), the global natural gas market has been significantly affected by geopolitical disruptions in the Middle East, resulting in a short-term supply shock and reduced availability of liquefied natural gas (LNG) in global markets. The agency reported that these developments have tightened global gas balances and increased price volatility. While global LNG supply growth is expected to continue in the medium term, the market is projected to remain tight through 2026 and 2027, depending on geopolitical conditions and infrastructure recovery. == Oceania ==

Australia Fuel prices at the petrol and diesel stations started soaring in early March in Australia, partly driven by panic buying. More critical to overall inflationary forces though, is the supply of diesel to drive heavy machinery. Australia's diesel is largely dependent on refineries in Singapore, South Korea, Malaysia, Taiwan and India. Experts have warned that the increased price of diesel would lead to much higher food prices, threatening both food security and the "just-in-time" logistics infrastructure that serves food retailers. In the meantime, the government has lowered the standard for the flash point for both diesel and petrol, which will make it easier for the country's two refineries to produce more fuel. In mid-March, the state governments of Victoria and Tasmania made public transport free to all users, for differing fixed time periods. On 30 March 2026 the Australian Government under Prime Minister Anthony Albanese, after a meeting of National Cabinet, announced a National Fuel Security Plan, to coordinate responses across all states and territories of Australia. The four-stage plan specifies roles and responsibilities of governments and industry partners. At this point, the country was at level two, dubbed "Keeping Australia moving", after going through a preparation and planning phase. The federal government announced the cutting of fuel excise by 50%, along with a three-month pause on road user charges for trucks. Singapore and Australia have signed an agreement to keep their energy trade flowing, with Singapore diversifying the origins of its supplies of crude oil. New Zealand On 12 March the New Zealand Government released six days' worth of petroleum following a global directive by the International Energy Agency to release 400 million barrels of petrol in response to supply disruptions caused by the 2026 Iran war. On 24 March the New Zealand Government announced that about 143,000 working families with children would receive a $50 tax credit to help with rising fuel costs from 7 April. Another 14,000 families were also expected to be eligible for a lower tax credit. On 27 March the New Zealand Government released its four-level fuel alert level system in response to fuel shortages caused by the Iran conflict. That day the country was placed on the first phase, watchful, with the public advised to use fuel cautiously. Other Pacific nations Several governments of Pacific nations, including Samoa, Fiji, Vanuatu, and Papua New Guinea, publicly reported by the end of March that they had enough fuel reserves to continue operating for a few months. However, some officials have privately expressed concerns about the future if oil deliveries to the region are halted owing to the war, and prices have gone up in all of these countries as well as Solomon Islands, Tonga, and Marshall Islands. Officials in Samoa, Cook Islands and Fiji have warned citizens against panic buying and hoarding. Australian Foreign Minister Penny Wong and Minister for Pacific Island Affairs Pat Conroy have signalled their willingness to ensure that regional neighbours do not run out of fuel. The New Zealand Government stated that it was assesing how it could help the Pacific region, particularly the Polynesian nations. Due to rising fuel costs, Air New Zealand has cancelled 1,100 flights in the Pacific region, affecting around 44,000 passengers. == See also ==