The continued closure of the Strait of Hormuz is a source of great concern for shipowners. Bunker fuel supply is dwindling, whereas prices have doubled since the war in Iran commenced.
About 20% of the world’s crude oil is supplied from the Gulf region and transits the Strait of Hormuz.
The price of VLSFO bunker oil in Singapore was $525 per tonne just before the war began. Prices had risen to more than $1,100 per tonne towards the end of March. Singapore is the largest refuelling port in the world, having sold 57.66 million tonnes of bunker fuels in 2025.
Shipowners are now worried about the availability of bunker fuels, the longer the Strait of Hormuz remains closed. The big question is whether the supply of bunker fuels will be there in the next 1 to 2 months.
No shortages have been reported yet, but shipowners are watching the developing situation. Some shipowners are now securing bunker 30 days out rather than the normal 10 days to safeguard supplies.
Shipowners have been asked to document if they are unable to buy compliant fuel with the 0.5% sulphur content. Asian countries such as the Philippines, which imports 98% of its fuel from the Gulf, have declared a state of national energy emergency.
