Countries in the Asian continent are grappling with the rising cost of fuel and energy shortage as the Middle East war rages pushing Brent crude oil above Sh12,950 ($100) per barrel.
As of today, Brent crude rose by 4 per cent to Sh13,465 ($103.94) per barrel in Asian trading, following an earlier spike to $113 (Sh16,433) per barrel amid escalating tensions over the Strait of Hormuz, a key route for about 20 per cent of global oil and liquefied natural gas shipments.
The surge comes after the US and Israeli striked Iran in late February, compounded by threats of further attacks that rattled markets.
President Donald Trump said oil prices would “drop like a rock” if a deal were reached but cautioned that no agreement is guaranteed, while Tehran denied any contact, accusing the US of trying to manipulate global markets.
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“The price of oil will drop like a rock as soon as a deal is done. I guess it already is today. Now, we have a very serious chance of making a deal that doesn’t guarantee anything. I’m not guaranteeing anything. I’m not going to come out here in a week or two weeks and have you all say, ‘Oh, you said…’ I didn’t say anything,” said Trump.
“All I’m saying is we are in the throes of a real possibility of making a deal—and I think… Uh, if I were a betting man, I’d bet on it. But again, I’m not guaranteeing anything,” he added.
The crisis is being felt across Asia. Vietnam has cut fuel exports and scaled back domestic flights due to jet fuel shortages, affecting connectivity between Hanoi and Ho Chi Minh City.
Vietnam Airlines will suspend some domestic flights from April 1 due to jet fuel shortages and rising prices linked to the Middle East conflict.
The regulator said the national carrier will cut about 23 flights per week due to tightening fuel supplies. VietJet Aviation is also reducing services on select routes, based on its booking schedules.
The ripple effects extend to the Philippines and Myanmar, where airlines are confronting tighter fuel supplies and rising operational costs, potentially driving up fares.
Thailand faces shortages at petrol stations and price increases of up to 6 per cent, while China has delayed planned fuel price hikes to ease the burden on consumers. Japan is tapping strategic reserves to maintain industrial and domestic supply.
