Global oil prices have surged to over KSh 12,900 ($100) per barrel following heightened tensions between the US, Israel, and Iran. The spike is largely linked to disruptions in oil shipments through Iran’s Strait of Hormuz, raising fears of prolonged instability in global energy supply.
Shipping through the strategic corridor has slowed significantly since the conflict began, triggering a 30% jump in crude oil prices and a 26% rise in Brent crude. Other fuel products have also seen sharp increases, with heating oil up 22% and gasoline rising 14%.
Over ten oil tankers and merchant vessels have been hit by drones and projectiles in the region, including one sinking, intensifying concerns over supply chain disruptions.
The turmoil has also impacted global stock markets. Japan’s Nikkei 225 dropped 7%, South Korea’s KOSPI fell nearly 8%, while Australia’s S&P/ASX 200 and Indonesia’s Jakarta Composite Index both slid about 4%. Singapore’s Straits Times Index fell roughly 3%.
In Kenya, motorists are bracing for a fuel price hike, although the Ministry of Energy and Petroleum has assured the public that the country has adequate fuel stocks to last until April.
Authorities are actively monitoring the situation and coordinating with government-to-government suppliers to mitigate potential disruptions.
The Strait of Hormuz is a vital and cost-effective route for transporting oil from Gulf suppliers such as Saudi Arabia and the UAE, with which Kenya has direct supply arrangements.
Any prolonged disruption could increase transport costs and further escalate fuel prices locally.
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