Strait of Hormuz Disruptions Raised Energy and Fuel Costs
Operators in regions reliant on imports face pressure as supply chain shifts increase input costs for farmers.
Updated on Sept. 22, 2026 in Oil and Gas
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The Iran war has disrupted energy supply chains through the Strait of Hormuz, driving up fuel and fertilizer costs for businesses in East Asia and sub-Saharan Africa. These impacts are hitting hardest in areas with limited digital economy access.
Why it matters
The conflict has created direct cost volatility for energy-dependent industries, particularly agriculture, which relies on affordable fuel and fertilizer. The supply chain instability forces businesses in affected regions to re-evaluate their reliance on global energy imports.
Industry analysts estimate a three-year window for energy market normalization following current supply chain disruptions. This period represents the duration expected for prices to stabilize for regions heavily reliant on imported energy.
The players
Jonathan Berman
The CEO of the Shell Foundation, an organization focused on scaling energy and enterprise solutions in emerging markets.
Shell Foundation
An independent charity that supports social enterprises and innovative business models in the global energy and agricultural sectors.
The details
The disruption of flow through the Strait of Hormuz has created immediate inflationary pressure on essential inputs like fertilizer and fuel. For farmers and businesses in East Asia and sub-Saharan Africa, this necessitates a shift toward more reliable, localized energy sources to bypass global supply chain volatility. Firms are being forced to adapt their operational models to mitigate the impact of rising costs on their bottom lines.
Timeline
September 22, 2026: Jonathan Berman discussed energy impacts at The Next 3 Billion event.
2029: Energy markets are projected to reach normalization.
Market Landscape
This situation follows the pattern established by the 1973 oil crisis, where regional conflict triggers structural shifts in global energy costs for import-dependent economies. Modern disruptions continue to test the resilience of supply chains that rely on critical maritime chokepoints.
Operators in energy-intensive sectors should factor three years of price volatility into their medium-term financial planning. Re-evaluating current supply chain dependencies in favor of localized, alternative energy sources may be necessary to protect margins from ongoing regional disruption.
The takeaway
The Iran war serves as a reminder of the fragility inherent in global energy dependencies for businesses operating in import-reliant regions. Management should track energy price indices closely and assess the feasibility of transitioning to more localized fuel or power procurement strategies.
Further reading
For more on how geopolitical events influence energy stability, see the Oil and Gas section.
Source note: This article includes information reported by Semafor.
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