Iran War Blockade Drives Global Fuel and Oil Prices Higher

Global fuel and motor oil prices rose in May 2026 as a blockade of the Strait of Hormuz, resulting from the Iran War, disrupted international supply chains. The blockade caused significant damage to regional infrastructure, hindering the distribution and production of oil worldwide.

In the United States, gas prices hit a four-year high, and the automotive industry warned of an impending motor oil shortage that would increase the cost of vehicle services. The United States Department of Energy was consulted by the automotive industry and the Independent Lubricant Manufacturers Association to address these shortages. While officials noted that many of the contributing factors are outside government control, the agency indicated it remains prepared to act to prevent further supply disruptions.

India experienced similar economic pressure, with oil companies raising petrol and diesel prices four times in eleven days. Diesel prices exceeded Rs 100 per litre, which increased transport costs and the price of essential goods. In response, critics and experts called for government tax reductions and a shift toward electric vehicles and carpooling to reduce the financial burden on consumers.