Fossil fuel importers face $330B cost surge amid US-Iran tensions: CREA

Fossil fuel importers incurred an additional $330 billion in costs for seaborne oil, fuel, and LNG between March and August 2026, a report from the Centre for Research on Energy and Clean Air (CREA) revealed. The report attributes this surge to the geopolitical tensions stemming from the US-Iran conflict, which have kept energy prices significantly above pre-war projections. Brent crude oil prices averaged around $93 per barrel during this period, while Asian and European LNG prices also saw substantial increases. This development underscores the financial strain on importers due to elevated energy costs, a situation reflected in the current market pricing for crude oil. Key Takeaways Markets appear to interpret the $330 billion excess cost as consistent with upward pressure on oil prices. Pricing suggests that geopolitical tensions have played a significant role in sustaining higher-than-expected energy prices. The current market environment is consistent with scenarios where crude oil could reach a new all-time high by the end of the year. What to Watch Market participants will be closely monitoring geopolitical developments, particularly any changes in US-Iran relations, as thes...