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The escalating military tensions in the Middle East are exerting a direct impact on both the global and domestic fuel markets. Israel’s attack on Iran has triggered a sharp rise in oil prices, which could quickly lead to soaring costs for drivers and transport companies. Analysts are warning that diesel prices are set to increase. For carriers, this means rising operating costs and the need to revise their rates.
According to experts at BM Reflex, “the situation on the domestic fuel market could change dramatically any time soon.”
Iran is a major oil producer and exporter also controlling the Strait of Hormuz, a critical oil and fuel transportation route, which sees the transit of about 20 percent of global oil and fuel supply. A potential blockade could severely disrupt global supply chains and push oil prices even higher.
JPMorgan warns that under a worst-case scenario, prices could escalate to USD 120–130 per barrel.
Source: trans.info