Iran and Ukraine wars: Why ship fuel is running short, and why it matters

What the report says

Shipping markets are facing tighter fuel supplies as the wars involving Iran and Ukraine disrupt crude flows and push refiners to favor more profitable products. In a Sept. 7, 2026 report, Al Jazeera said the shortage is affecting heavy fuel oil, also known as bunker fuel, which powers most large cargo ships and oil tankers. The outlet said lower crude availability, refinery decisions and conflict-related disruption in key waterways are all contributing to the squeeze.

Al Jazeera cited data from Kpler showing Middle East fuel oil exports fell year on year from March to August, while Energy Aspects projected a market deficit in the third quarter. The report linked the shortage to attacks and blockages affecting major routes, including the Strait of Hormuz and the Red Sea, as well as Ukrainian strikes on Russian refineries. Russia is a major crude exporter, and reduced refinery output has also weighed on supply.

The article said refiners are increasingly directing crude toward diesel, petrol and jet fuel because those products can deliver better margins, leaving less residue available for ship fuel. It noted that this dynamic has helped lift prices for marine fuels, especially in Asia.

Singapore, the world’s biggest bunker hub, was highlighted as especially exposed because it imports more than half of the fuel oil it consumes. Al Jazeera said rising ship-fuel costs could feed into global freight rates and, eventually, the prices paid by consumers and manufacturers.