Tensions remain high between Iran and Israel despite a fragile ceasefire, with the possibility of fuel surcharges being just around the corner for all methods of transport.

The ongoing conflict has had a significant impact on oil prices, which spiked dramatically when hostilities erupted, before seeing a decrease with the announcement of the ceasefire.

However, experts warn that the situation remains volatile, and any resumption of fighting could trigger another spike in oil prices, affecting transportation costs across the globe.

Prior to the ceasefire announcement and subsequent price drop, some UK haulage companies had already warned of impending fuel surcharges, citing an increase in fuel costs of up to 10% at one point this week.

The biggest concern for the logistics industry is the threat of the closure of the Strait of Hormuz, through which 20% of the world’s oil is transported.

If hostilities resume and the Strait is closed, it could significantly impact the global oil market, driving up ocean, air and road freight prices in the form of fuel surcharges.

As the fragile ceasefire hangs in the balance, businesses worldwide will likely be keeping a close eye on the the situation, with the potential for rising oil prices challenging the global supply chain if tensions flare again.

As ever, the team at Atlantic Pacific will keep you advised of any significant developments on the subject.