How the Middle East Conflict is impacting the bunker market

“The Middle East is a major source for the bunker market,” said Carl Johan van Sydow, managing director, Bunker One Sweden, noting approximately 20% of the global oil supply flows through the Strait of Hormuz. The restriction of tankers transiting the strait is impacting bunker prices and volumes.

Since the start of the Middle East Conflict, the price of Brent crude has jumped more than 30% per barrel, while West Texas Intermediate is almost 40%. Marine gasoil, burned by tugs, has jumped in price from approximately US$750 per metric tonne to upwards of US$1,250 metric tonne. These rising prices are impacting contract terms for tug owners.

Higher gasoil prices may offer an opportunity for operators to use biofuels to comply with emissions regulations. 

Bunker One is a leading global physical supplier and trader of marine fuels and lubricants. During his presentation at ITS 2026, Mr van Sydow shared business intelligence from Bunker One’s global team, exploring how geopolitics are playing a key role in shaping shipping rates, route availability, and overall stability for the tug market’s supply chain. He shares some key insights on how tug owners can address this volatility.