The ongoing conflict involving Iran is costing the global shipping industry an extra €340 million per day in bunker fuel expenditure, according to pro-green energy group Transport & Environment (T&E). The figure, shared in an email statement on Friday, underscores the scale of fuel cost exposure facing operators as energy markets continue to absorb the impact of geopolitical instability.
A Multi-Billion-Euro Hit Since February
As reported by Ship & Bunker, US and Israeli forces launched attacks on Iran on February 28 — a turning point that set off a sharp upward move in bunker fuel prices. Since that date, T&E estimates the global shipping industry has collectively absorbed more than €4.6 billion (approximately $5.3 billion) in additional fuel costs.
The price increases have been significant across fuel types. According to T&E’s assessment, VLSFO prices in Singapore have climbed 223% since the beginning of 2026, while LNG bunker prices are up 72% since early March.
Prices Pull Back From March Peak
Ship & Bunker data shows that VLSFO prices in Singapore hit a high of $1,120.5/mt on March 13 before falling to $838.5/mt by March 26. The publication notes that this retreat has come amid market speculation that the United States and Iran may be moving toward diplomatic talks to bring the conflict to an end.
Nearly the Entire Global Fleet Exposed
T&E highlights that approximately 99% of the global fleet operates on conventional marine fuels, leaving the overwhelming majority of shipping operators vulnerable to the kind of supply disruption and price volatility now being experienced. The organisation frames this dependence as a structural risk for the sector.
Alternative Fuels Inch Toward Price Parity
A notable side effect of the price surge, according to T&E, is a narrowing of the cost gap between conventional fuels and greener alternatives. In some ports, the price difference between marine gas oil (MGO) and e-fuels has reportedly closed to around 5% — a level approaching parity that green energy advocates have long pointed to as a potential tipping point.
T&E Calls for Policy Intervention
To reduce future exposure to bunker price shocks, T&E advocates for measures including electrification, wind-assisted propulsion, and slow steaming. The group states that wind technologies alone have the potential to cut fuel consumption by up to 18%. T&E is also urging policymakers to strengthen FuelEU Maritime targets and expand support for e-fuels as part of a broader strategy to improve energy resilience across the shipping sector.
Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.
Sources: Ship & Bunker
