Iran Conflict Costing Shipping Industry €340 Million A Day
Why it matters: The conflict exposes shipping's fossil fuel dependency, accelerating the economic case for green energy transition.
- T&E analysis reveals the shipping industry is incurring an extra €340 million daily in fuel costs due to the Gulf conflict, accumulating over €4.6 billion since February 28.
- Marine fuel prices have surged dramatically, with VLSFO up 223% since early 2026 and LNG rising 72% since early March, making alternative fuels increasingly competitive.
- Eloi Nordé (T&E) emphasizes that while governments and parts of the industry have criticized green measures as too expensive, these costs are dwarfed by the current disruption, urging increased investment in European e-fuels and energy efficiency.
- E-fuels offer a path to reduced exposure to geopolitically sensitive routes by enabling local production, strengthening energy security and mitigating external shocks.
- Efficiency measures such as electrifying short-sea vessels and ferries, along with slow steaming and wind-assistance for ocean-going ships, are presented as immediate, cost-effective solutions to reduce fuel market pressure.
The ongoing conflict in the Gulf is costing the shipping industry an astounding €340 million daily in additional fuel expenses, totaling over €4.6 billion since late February, according to T&E analysis. This massive financial drain highlights the industry's vulnerability to fossil fuel price volatility, with T&E advocating for green measures like e-fuels, electrification, and efficiency upgrades as a critical buffer against future shocks.
