Hormuz crisis adds $330bn to global fossil fuel import bills

Fossil-fuel importing countries have incurred more than $330 billion in additional costs since the Hormuz crisis began in February, according to a new analysis by the Centre for Research on Energy and Clean Air (CREA), a Finland-based independent research organisation.

The crisis, which began after US-Israeli attacks on Iran on February 28, has disrupted global shipping and pushed up oil and gas prices. Importers have paid an average $55 billion more each month, CREA said.

Crude oil accounted for about $164 billion of the additional cost, with prices averaging 35% above what markets had expected before the conflict. Diesel and gasoil prices rose 59%, adding $74 billion. Gasoline added another $36 billion, while higher LNG prices contributed $38 billion and jet fuel another $20 billion.

The impact has been particularly broad for diesel, which is heavily used in transport, farming and industry. Of the 170 countries covered by the analysis, 134 paid more for diesel than pre-war market expectations.

Poorer countries have faced a heavier burden. Low- and lower-middle-income countries paid an additional amount equivalent to 1% of their 2024 GDP on higher fossil fuel costs, more than twice the 0.45% burden on high-income countries.

China faced the largest additional bill at $35.5 billion, followed by India at $22.5 billion and the United States at $16.5 billion.

CREA said countries that expanded clean energy since 2020 avoided an estimated $36 billion in fossil fuel imports during the first five months of the crisis.

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