Governments worldwide are racing to strengthen their fuel supply as the US-Israel war with Iran enters its third week.

Since the conflict began, disruptions to oil and gas supply chains have been felt globally and show no signs of easing, reports The Witness.

In Vietnam and Sri Lanka, governments are urging reduced travel to conserve fuel, with Vietnam promoting remote work and Sri Lanka declaring weekly public holidays for public institutions.

In South Africa, the government is diversifying its fuel import sources, enhancing strategic storage capacity, and accelerating key infrastructure investment, Department of Mineral and Petroleum Resources (DMPR) spokesperson Lerato Ntsoko says.

She says fuel consignments scheduled for this month and early next month were already secured prior to the recent escalation in global tensions, but warned that the situation remains dire.

“As a net importer [a country that relies on external supply to meet its needs] of petroleum products, South Africa remains inherently exposed to these external dynamics.

“Sustained increases in international oil prices, coupled with exchange rate fluctuations, are expected to translate into higher domestic fuel prices in the months ahead,” Ntsoko states.

She adds the government has growing concerns over this week’s developments in international oil markets, which have already exerted upward pressure on fuel prices.

Supply chain disruptions and heightened uncertainty affecting critical global shipping routes have caused crude oil prices to exceed $100 (R1 684.48) per barrel more than once this week.

Crude oil prices climbed above $110 (R1 853.25) a barrel on Wednesday and continued to increase on yesterday.

The price move follows an Israeli strike on Iran’s South Pars gas field — the largest gas field in the world and the biggest source of Iran’s domestic energy supply.

Iran retaliated by attacking Qatar’s Ras Laffan, the country’s main gas facility, hours after Iran said it would target oil and gas facilities across the Gulf region in retaliation for the South Pars strike.

Oil prices were already elevated as critical oil and gas infrastructure had previously been hit, and the Strait of Hormuz — a narrow waterway through which a fifth of the world’s oil supply passes — has been closed by Iranian forces.

Analysts warns that prices will continue to increase until the war comes to an end.

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