Oil prices surged to $117 a barrel on Monday, triggering fears of worldwide shortages as Iran continues to block the Strait of Hormuz. The critical maritime route, through which about a fifth of the world’s oil is transported, remains closed following the assassination of Iran's supreme leader by US and Israeli forces four weeks ago.
In the UK, diesel prices jumped to their highest level since December 2022, with the average price per litre reaching 181.2p, according to RAC analysis. Chancellor Rachel Reeves has been urged to reconsider plans to raise fuel duty by 5p per litre at the end of August, though no announcement has been made. Reeves stated last week that contingency planning is underway for "every eventuality."
Egypt has imposed some of the most severe restrictions, ordering restaurants, shops, and cafes to close by 9pm to save energy. Street lights and roadside advertising have been dimmed, and many people have been told to work from home at least one day a week. Myanmar, which relies on imported fuel, has introduced sweeping rationing for private vehicles and seen diesel prices jump to 3,800 kyat per litre, up from 2,450 kyat in February. Domestic airlines, low on jet fuel, have suspended routes and imposed strict baggage limits.
Other nations have enacted emergency austerity measures. Pakistan has mandated a four-day working week for government workers and moved back spring holidays for schools. The Philippines has ordered all government agencies to reduce fuel and power consumption by up to 20 per cent and banned study tours and team-building activities for public servants. Thailand, despite a deal with Iran to allow its oil vessels safe passage, has also moved government offices to a four-day week.
