US Strikes Iranian Tankers Amid Fuel Price Worries for Africa

The US military has struck three Iranian oil tankers in a fresh confrontation that could worsen pressure on African airlines already facing high fuel costs.

The vessels were attacked after the US accused Iran's Islamic Revolutionary Guard Corps of launching ballistic missiles towards an American aircraft carrier and guided-missile destroyer. The warships reportedly evaded the missiles, but two Iranian tankers were disabled and a third unladen vessel was destroyed.

Africa is particularly exposed to disruption in the region due to its dependence on imported fuel, with approximately 70% of jet fuel and kerosene passing through the Strait of Hormuz. Fuel accounts for between 30-40% of an African airline's operating expenses, compared to a global average of 20-25%, according to the African Airlines Association.

African airlines such as South Africa's low-cost carrier FlySafair have limited room to absorb sharp price increases, which could lead to increased ticket prices or reduced flights. A previous disruption saw FlySafair estimate an additional $2,070 in operating costs for each Boeing 737-800 per hour.