Global shipping fleet may face fuel shortage due to war in the Middle East

The global economy could face a new energy risk as the price of fuel oil — the main fuel used by many cargo vessels — surges amid the war involving Iran. The product, traditionally considered the cheapest part of refined oil, has become unusually expensive, raising concerns in the shipping industry.

While crude oil prices have remained relatively stable at around $100 per barrel, the situation in the fuel oil market has tightened significantly. In major bunkering hubs prices have jumped to record levels, with fuel oil trading at about $140 per barrel in Singapore and close to $160 in Fujairah.

Shipping companies have begun warning about the possibility of supply shortages. Executives in the sector say some key ports in Asia could run low on fuel if the situation worsens. The tightest supply conditions are reported in Singapore and Fujairah, two of the world’s largest refueling centers for ships.

The disruption is largely linked to the closure of the Strait of Hormuz, a critical route for oil products exported from refineries in Saudi Arabia, Kuwait and the United Arab Emirates. According to the International Energy Agency, refineries in the Persian Gulf produce about 20% of the fuel oil traded internationally.

Traders are already attempting to redirect supplies from Europe and the Americas to Asia in order to ease the shortage. However, if the Strait of Hormuz remains closed for an extended period, the risk of vessels struggling to secure enough fuel could increase, potentially disrupting global trade and shipping routes.

Tags: prices, fuel