Bunker prices jump by three-quarters since Iran war began
Bunker prices in Singapore have risen by roughly three-quarters since the US-Iran war began on February 28, with VLSFO climbing to $886 per tonne and HSFO to $764 by Monday this week, increases of 74% and 77% from February 27. Singapore VLSFO peaked at $1,120.50 per tonne by March 13 and has not returned close to pre-war levels. Disruption around the Strait of Hormuz has squeezed supply into Asia and the Middle East, with Singapore VLSFO lead times stretching into double digits and Fujairah at times effectively dry for prompt VLSFO.
Why it matters: The persistence of elevated bunker prices and hub shortages indicates that the Iran war's disruption is now embedded in energy security and shipping costs rather than being a passing price shock.