Middle East conflict triggers rising Fuel Prices and Transport Fuel Surcharges
Ongoing conflict in the Middle East, specifically involving Iran, the US, and Israel has caused significant disruption to oil production and shipping, resulting in a sharp rise in global oil prices and subsequent fuel surcharges for UK transport providers.
Due to the instability, many UK road haulage providers have introduced or increased fuel surcharges, with some reporting adjustments of 15–20%, taking effect around 9th March, 2026.
UK average diesel prices reached a 16-month high in early March, with some carriers reporting fuel-related surcharge increases of 8% to 15% to manage rising operational costs.
Oil prices moved from roughly $60 per barrel in January 2026 to over $80 in early March, with some reports indicating spikes exceeding $100 per barrel as the conflict continued.
The situation is volatile, with the impact on fuel prices depending on the duration of the conflict. While some initial price spikes were reported, market analysts are closely watching for long-term disruptions.
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The escalating conflict in the Middle East, particularly following recent U.S. and Israeli military strikes on Iran and subsequent retaliatory actions, has triggered major disruptions to global air and ocean freight operations.
Shipping lines have confirmed a significant number of cancelled voyages for the remainder of February into March, anticipating a pronounced seasonal slowdown.
The Canada Pension Plan Investment Board (CPPIB) and Ontario Municipal Employees Retirement System (OMERS) , which own 34 per cent and 33 per cent of ABP, respectively, have appointed bankers at investment bank Morgan Stanley to explore a sale of their stakes.
In a joint effort to advance low-carbon logistics, Kuehne+Nagel, LeShuttle Freight, Voltempo, and DAF Trucks have successfully sent the first electric heavy-goods vehicle (eHGV) through the Channel Tunnel.