US-Iran Conflict Ends Ceasefire and Spikes Global Fuel Prices

Fuel prices are rising globally after Donald Trump declared that the June ceasefire agreement with Iran is over. The resumption of hostilities includes a sixth night of U.S. military strikes on Iran and subsequent disruptions to shipping in the Strait of Hormuz, where the Joint Maritime Information Centre has raised threat levels to severe. Iran has reportedly ordered Houthi rebels to shut the Bab el-Mandeb gateway to the Red Sea if Iranian infrastructure is targeted.

In the United States, the average price for regular gasoline reached $3.98 per gallon, while diesel rose to approximately $5.00. The Government of India prohibited the deployment of Indian seafarers through the Strait of Hormuz following the deaths of two sailors, though its state-owned Oil Marketing Companies have kept domestic retail fuel rates steady since May.

Pakistan faces more immediate economic impact, with expected price hikes starting July 18. High-speed diesel is projected to increase by up to Rs. 40 per litre and petrol by approximately Rs. 10 per litre. Prime Minister Shehbaz Sharif is reviewing pricing summaries, and the government is considering reducing the petroleum levy to offset costs. Simultaneously, the National Committee on Monitoring and Coordination has ordered the Oil and Gas Regulatory Authority of Pakistan to crack down on fuel hoarding and speculative stockpiling to prevent artificial shortages.