Global ‘fuel pandemic’ deepens as Strait of Hormuz remains closed

The conflict launched by the United States and Israel against Iran has now entered its second month, and the ripple effects across global energy markets are intensifying. With Tehran’s decision to close the Strait of Hormuz—a chokepoint for roughly one-fifth of global oil supply—what began as a regional disruption has evolved into what experts describe as a global “fuel pandemic.” The crisis first manifested in Southeast Asia but has since spread to Western nations, where rising prices and supply constraints are fueling social unrest.

Europe grapples with price shocks and cross-border fuel runs

In Spain, the government reduced value-added tax on fuel from 21 percent to 10 percent through a decree enacted March 22 in response to price increases nearing 20 percent over the past month. The move prompted an influx of motorists from neighboring France and Portugal seeking cheaper gasoline. Meanwhile, in Paris, truck drivers staged protests blocking traffic to demand government subsidies, warning that soaring fuel costs are making the transport sector unsustainable.

Blackouts and queues in Africa and Asia

In Somalia and Egypt, the crisis is hitting households directly. Fuel prices in Somalia have more than doubled from pre-war levels, rising from $0.65 to $1.50 per liter, sparking demonstrations by tuk-tuk drivers and long queues at petrol stations. Egyptian authorities have imposed nightly closures on commercial establishments, restaurants, shopping malls, and entertainment venues at 9:00 PM—extended to 10:00 PM on weekends and holidays—as part of emergency energy conservation measures.

Southeast Asia turns to alternative suppliers

The Philippines, which relies on imports for approximately 90 percent of its energy needs, has taken the extraordinary step of purchasing 2.48 million barrels of crude oil from Russia. The Marcos Jr. administration has also signaled a potential revival of joint energy projects with China in the disputed South China Sea to secure supply. Bangladesh, meanwhile, has issued directives for public sector employees to reduce electricity and fuel consumption in government offices.

Oil prices at three-decade high

Brent crude surged approximately 60 percent during March, reaching $116 per barrel—the sharpest monthly increase since the 1990 Gulf War. Analysts warn that further price hikes are likely if the Strait of Hormuz remains closed and regional hostilities continue.