Iran conflict disrupts shipping and pushes up fuel prices worldwide

The conflict involving Iran has caused major disruptions to global shipping, particularly in the Strait of Hormuz. Data from the analytics firm Kpler shows tanker traffic through this critical waterway has fallen by 90%, forcing companies like Maersk and COSCO to reroute vessels. This has significantly lengthened shipping times and increased costs.

These shipping disruptions are directly impacting fuel prices for consumers around the world. In Europe, diesel prices on motorways have reached €2.50 per liter. In Seoul, South Korea, the price of fuel has surged past 1,800 won per liter. The rerouting of ships is creating shortages and driving up costs in global energy markets.

The situation is causing volatility across financial markets, affecting stocks, bonds, and commodities. Investors are reacting to the uncertainty over shipping lanes and energy supplies, with some markets briefly rising on hopes for diplomatic talks to ease the crisis.