The escalating tensions between the United States and Israel in their conflict with Iran have led to a global fuel crisis, with thousands of tankers carrying essential oil and liquefied natural gas (LNG) deliveries stranded on either side of the Strait of Hormuz. This crucial waterway, currently under a blockade by Iran, is the only route from the Gulf to the open ocean, and its closure has caused a significant disruption in global energy markets. In response to this crisis, Egypt’s government has announced that it is among the “best-performing “countries in managing the situation, implementing measures to conserve fuel.
The situation has been exacerbated by the near — total halt in shipping through the Strait of Hormuz, as well as air strikes on and around key energy facilities in the Gulf region. Since the conflict entered its sixth week, traffic through the strait has plummeted by over 95 percent, with Tehran allowing only a few tankers to pass through after reaching agreements with certain countries. Additionally, energy infrastructure in the Middle East has sustained damage, with QatarEnergy declaring force majeure on some of its long-term LNG supply contracts following an attack on Qatar’s Ras Laffan LNG facility, which is the largest in the world.
The disruption has led to a surge in energy prices, with global oil benchmark Brent crude reaching around $109 per barrel, up from $65 per barrel before the war began. In Egypt, the Petroleum Ministry has announced fuel price increases ranging from 14 percent to 30 percent. On March 28, Egyptian Prime Minister Mostafa Madbouly revealed that the country’s energy import bill had surged from $1.
2bn in January to $2. 5bn in March. As Egypt is both a major energy importer and one of the region’s most heavily indebted economies, the situation is particularly dire.
In response to the crisis, Madbouly announced a series of measures aimed at mitigating the impact and preserving state energy resources. These include the implementation of 9pm shutdowns for markets and shopping malls, with food outlets closing at 10pm, and the imposition of alternating driving days in certain areas. The government has also encouraged officials in Thailand and Vietnam to work from home and limit travel, while Myanmar has imposed a four-day work week for government offices. Furthermore, Bangladesh has reduced working hours for government and private workers, as well as banking services, to conserve electricity.
In a similar vein, Sri Lanka and Slovenia have introduced fuel rationing and purchase limits to manage shortages and soaring costs. These measures reflect the global nature of the energy crisis, with countries across the world taking steps to conserve resources and mitigate the impact of the conflict in the Gulf region.
Source: aljazeera
