Iran War Adds €340 Million/Day to Shipping's Bunker Bill, Says T&E

by Ship & Bunker News Team
Friday March 27, 2026

Pro-green energy group Transport & Environment (T&E) estimates that shipping companies are now paying an additional €340 million per day in bunker fuel costs due to the ongoing Iran conflict affecting energy markets.

Since February 28, the industry has absorbed more than €4.6 billion ($5.3 billion) in extra costs as bunker fuel prices climbed sharply, it said in an email statement on Friday.

T&E adds that VLSFO prices in Singapore have climbed by 223% since the start of 2026, while LNG bunker prices are up 72% since early March.

According to Ship & Bunker data, VLSFO prices in Singapore have fallen from the peak level of $1,120.5% on March 13 to $838.5/mt on March 26 amid speculation that the US and Iran may enter talks to end the conflict.

T&E said the spike underscores the sector’s reliance on conventional marine fuels, with around 99% of the global fleet exposed to market volatility and supply disruptions.

Rising conventional marine fuel prices are also narrowing the gap with e-fuels.

T&E noted that in some locations, the price difference between MGO and e-fuels has fallen to around 5%, bringing them close to parity.

T&E said measures such as electrification, wind-assisted propulsion, and slow steaming could reduce exposure to bunker price shocks, adding that wind technologies alone can cut fuel use by up to 18%.

The organisation urged policymakers to scale up support for e-fuels and strengthen FuelEU Maritime targets to improve resilience and reduce dependence on volatile fuel markets.

Ship & Bunker News Team
To contact the editor responsible for this story email us at editor@shipandbunker.com