Finance Pro
    Subscribe for Alerts
    Money

    Iran War: How Rising Energy Prices Are Affecting People Around the World | Invesloan.com

    Updated:

    Iran’s blockade of the Strait of Hormuz, through which a quarter of global seaborne oil and a fifth of global liquefied natural gas is shipped, has had sweeping implications worldwide.

    Rising gas prices amid the Iran war have sparked panic-buying lines and shortages at gas pumps. Other supply chains, such as fertilizer and seafood, could also be in peril.

    “Past crises — including COVID-19 and the war in Ukraine — showed how disruptions to energy, transport, and agricultural inputs can quickly spread across interconnected markets,” the UN Conference on Trade and Development wrote in a report released March 10.

    Here’s how countries and consumers around the world are feeling the effects of the Iran war.

    On Sunday, motorists in Suzhou in eastern China lined up to fill their tanks ahead of an announced gas price hike.


    Cars line up for gas in China.

    Motorists fill their tanks ahead of a gas price adjustment in Suzhou, China. 

    CN-STR/AFP via Getty Images

    China’s National Development and Reform Commission had initially announced that the set average price of gas would rise from $4.20 a gallon to $5.10 a gallon, an increase of 90 cents, The New York Times reported. On Monday, the agency said the planned increase would be lowered to 50 cents, bringing the price to $4.70 a gallon.

    Customers in Santiago, Chile, also rushed to gas stations on Tuesday ahead of a 54% increase in fuel prices.


    Cars line up for gas in Chile.

    Customers wait in line at a gas station in Santiago, Chile. 

    Cristobal Olivares/Bloomberg/Bloomberg via Getty Images

    Jorge Quiroz, Chile’s finance minister, announced that the price hikes would take effect on Thursday, sparking panic buying as vehicle owners sought to fill their tanks before the change.

    In Bangkok, gas stations faced fuel shortages.


    Empty signs on gas pumps in Thailand.

    A gas station in Bangkok. 

    Arnun Chonmahatrakool/Thai New/Thai News Pix/LightRocket via Getty Images

    Some pumps featured signs reading “out of stock” or “awaiting delivery.”

    In some parts of Los Angeles, gas prices exceeded $8 per gallon.


    Gas over $8 per gallon in Los Angeles.

    A sign outside a Chevron gas station on March 19 showed prices over $8 a gallon. 

    Eric Thayer/Los Angeles Times via Getty Images

    As of March 25, the average price per gallon of regular gasoline in California was $5.831, according to AAA. The national average across the US was $3.983 per gallon.

    Gas prices in California are typically higher than the rest of the country due to state taxes, stricter environmental regulations, including “cleaner” gas blends, and limited supply compared to other areas of the country.

    Porter Airlines announced on Monday that it would institute a temporary fuel surcharge on some flights.


    Porter Airlines planes at an airport.

    Porter Airlines planes. 

    Steve Russell/Toronto Star via Getty Images

    On flights booked with loyalty points through the Canadian airline’s VIPorter redemption program, Porter began charging a $40 peak surcharge for flights within North America and an $86 fee per leg for international flights.

    “We want to be transparent about why this change is necessary,” Porter wrote in an email to customers. “Fuel represents the highest cost of airline operations and this surcharge allows us to maintain the number of points required for redemption.”

    President Ferdinand Marcos of the Philippines declared a state of “national energy emergency” on Tuesday.


    Philippine President Ferdinand Bongbong Marcos Jr. greets passengers on a bus.

    Philippine President Ferdinand Marcos visited the Paranaque Integrated Terminal Exchange (PITX) to oversee the rollout of fuel subsidies for public utility vehicles. 

    Philippine Presidential Com. Office/Handout/Anadolu via Getty Images

    The executive order stated that the war in the Middle East had resulted in “imminent danger posed upon the availability and stability of the country’s energy supply.”

    The Philippines also rolled out fuel subsidies for public utility vehicles to help them absorb climbing costs.

    Street vendors in New Delhi have switched to electric, coal, wood, and kerosene stoves amid a shortage of LPG gas cylinders.


    A tea seller uses a coal stove in New Delhi.

    A tea seller in New Delhi, India. 

    Ishant Chauhan/Hindustan Times via Getty Images

    Amid the shortage of liquefied petroleum gas, which is used across India for everyday cooking, a tea seller on Tank Road in Karol Bagh, New Delhi, was photographed heating up tea using a coal stove on Sunday. Many eateries in the country have had to scale back their menus or close completely.

    Some fishing vessels in Thailand have halted operations due to the prohibitively high cost of boat fuel.


    Docked fishing boats in Narathiwat Province, Thailand.

    Docked fishing boats in Narathiwat Province, Thailand. 

    Ploy Phutpheng/SOPA Images/LightRocket via Getty Images

    About 40% of Thailand’s 9,000 registered fishing vessels have paused operations, a Thai official told the Bangkok Post.

    The reduction in fishing is expected to push up seafood costs. Seafood vendors have already raised prices of some items by 5 to 20 baht, or between around 15 and 61 cents, per kilogram, according to The National Fisheries Association of Thailand.

    The closure of the Strait of Hormuz has also raised concerns about global fertilizer supply shortages affecting food security and prices.


    A Kashmiri farmer sprinkles fertilizer.

    A Kashmiri farmer sprinkles fertilizer near a mustard field. 

    Firdous Nazir/NurPhoto via Getty Images

    About one-third of the global seaborne fertilizer trade passes through the Strait of Hormuz, according to a report released by the UN Conference on Trade and Development on March 10.

    The report added that the shipping disruption is “raising concerns about ripple effects across global markets.”

    Share.

    Keep Reading

    © 2007-2023 Invesloan.com All Rights Reserved.