$330 Billion Fossil Fuel Price Shock Revealed After Hormuz Crisis

The recent US-Israel war with Iran has had far-reaching consequences for fossil fuel importers worldwide. According to a report by the Centre for Research on Energy and Clean Air (CREA), these countries paid an estimated $330 billion more in six months due to higher prices.

Crude oil accounted for the largest share of this additional bill at $164.1 billion, followed by diesel and gasoil at $73.8 billion. Gasoline added another $35.7 billion, while LNG contributed $38 billion across the Atlantic and Pacific basins.

The price shock was particularly severe for gas and refined fuels, with Asian LNG prices averaging 75% above pre-war expectations between March and August, while European gas prices were 60% higher. Diesel was 59% above expectations, gasoline 43% higher, and Brent crude 35% higher.

India was among the countries facing the largest additional fossil fuel import costs, with a gross additional cost estimated at $22 billion, behind only the European Union at $78 billion and China at $35 billion. India's cooking fuel market was also affected, with an estimate of paying 29% more per tonne for imported LPG than the market had expected over the six months.