Global Fuel Prices Surge Amid US-Iran Naval Conflict

Global energy markets are facing severe volatility as a naval blockade by the United States and a retaliatory Iranian policy of restricting transit through the Strait of Hormuz disrupt oil supplies. This conflict, combined with hostilities in the Red Sea, the shutdown of Saudi Arabia's East-West pipeline, and attacks on Russian refineries, has pushed oil tanker rental rates for Very Large Crude Carriers from West Asia to China to a record $1.2 million per day.

In the United States, national average gasoline prices have reached $4.25 per gallon, with Oregon averaging $5.06. The shipping disruptions threaten to drive the cost of delivered crude in Asia toward $150 a barrel.

The price surge has triggered domestic instability in the Philippines, where diesel prices rose by P8.82 per liter in one week. In response, the transport group PISTON has scheduled a nationwide strike for September 29 and 30 to demand higher fares and the suspension of petroleum taxes. The Philippine Department of Transportation is currently exploring fuel subsidies, toll exemptions, and terminal fee waivers to prevent these costs from being passed to commuters, while the Development Budget Coordination Committee considers reducing fuel excise taxes.