Fuel Shortages Spread Across Five Countries Amidst Ongoing Iran War
The ongoing Iran war has caused fuel shortages in at least five countries as of day 203. Brent crude prices have reached nearly $110 this month, their strongest level since spring.
The Strait of Hormuz has been largely shut since Iran retaliated for US and Israeli strikes on February 28. The Houthi advances at the Bab al-Mandab chokepoint have squeezed the main bypass route, further exacerbating the crisis.
According to Vitol CEO Russell Hardy, the market is missing about 2 million barrels a day of products from Russia and almost 2 million more from the Middle East. The International Energy Agency (IEA) reports that refined shipments leaving the Gulf are still below half their February pace.
The five countries currently rationing fuel or reporting stockouts are France, Pakistan, Bangladesh, Indonesia, and Nepal. In France, between 10% and 12% of stations were out of at least one fuel from September 13 to 15. President Emmanuel Macron has announced plans for a G7 meeting on coordinated action.
In Pakistan, emergency fuel curbs have been reimposed, with shops and malls required to close by 09:00 PM. Government vehicles will lose 50% of their fuel allocation. Bangladesh is rationing supplies due to the country's reliance on imported petroleum, while Indonesia has implemented restrictions in South Sulawesi.