Despite a ceasefire agreement between Iran and Israel, tensions remain high, leading to increased volatility in oil prices.
Fuel prices rose by about 7% this week due to the ongoing conflict, with further sharp increases expected before the truce was announced, resulting in a drop in oil prices today.
At the time of writing, the ceasefire remains fragile, with both sides accusing each other of violations. If hostilities resume, fuel prices could continue to rise in the coming days or weeks.
In the event that Iran closes the Strait of Hormuz, the situation could escalate further, intensifying the price fluctuations.
This week, Westbound began receiving communications from certain transport providers indicating the introduction of a weekly fuel surcharge. Ocean and air freight services may also face fuel surcharges at short notice.
If the ceasefire holds, it is hoped that fuel costs will stabilise. However, if it breaks down, customers should be prepared for the potential of surcharges in the very near future.
The Westbound team is closely monitoring the situation.
If you have any questions regarding the above, then Westbound are here to help. So, please do not hesitate to contact us.
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