Global Fuel Supplies Face Growing Pressure Amid Iran War

By Staff, Agencies

Global fuel supplies are coming under increasing pressure as the US war on Iran and the confrontation surrounding the Strait of Hormuz disrupt crude and refined fuel flows.

CNN reported on Wednesday that the disruption has expanded from an oil supply shock into a broader fuel crisis affecting gasoline, diesel, and jet fuel markets.

"This is man-bites-dog news. The market is screaming that we're short," Bob McNally, founder and president of Rapidan Energy Group, told CNN.

Refineries across West Asia have been affected by the war, while facilities that remain operational are facing difficulties transporting crude and refined products amid the standoff around the Strait of Hormuz.

The disruption is placing additional pressure on global energy supplies as the United States continues its war on Iran.

Approximately 40% of Russia's refining capacity is offline following Ukrainian drone attacks, according to Capital Economics. The affected capacity represents around 3% of global refining capacity.

Moscow has responded to domestic fuel shortages by extending bans on gasoline and diesel exports through the end of January 2027.

China has also restricted fuel exports to protect domestic supplies.

Beijing has reduced its oil imports, helping limit pressure on crude prices while simultaneously seeking to prevent shortages in its domestic fuel market.

The disruptions have increased the importance of US Gulf Coast refineries, which are operating at high levels amid elevated refining margins.