Bermuda shipping companies are closely monitoring the situation
Hopes of a swift end to conflict in the Middle East appear dashed following the selection of Mojtaba Khamenei as new Supreme Leader in Iran.
The cost of fuel in the US is rising, amid fears of inflation and a lingering war in the Middle East; Bermuda shipping companies are monitoring the situation.
Mojtaba Khamenei, a 56-year-old Shi’ite cleric, is the son of Ali Khamenei, whose was killed during the initial joint US and Iraeli airstrikes against Iran.
US President Donald Trump has demanded Iran’s unconditional surrender, and is unhappy with the new choice of leader. Israel had said it would kill whoever succeeded the elder Khamenei unless Iran ended its hostile policies.
So far, at least 1,230 Iranians have been killed – including civilians and children, while seven US servicemembers were killed. There have been more casualties in Israel, Lebanon, Saudi Arabia and further afield following Iranian strikes.
The prospect that disruptions to global energy supplies could persist sent oil prices surging past $100 dollars a barrel on Monday, sparking fears of 1970s-style inflation.
The war has effectively shut the Strait of Hormuz, a chokepoint for a fifth of global oil and liquefied natural gas.
On Thursday, the American Automobile Association reported that the average US price for a gallon of gasoline had jumped from $2.98 to $3.25 in a week.
Any impact on local fuel prices, as well as energy or shipping costs, remains to be seen.
Richard Todd of the Neptune Group, managers Bermuda Container Line and the MV Oleander, says they are monitoring the situation, but it is too early to determine what impact it will have on operating costs.
A similar sentiment was relayed by Howard Pitcher, VP of Operations at Container Ship Management, operators of the Somers Isle.
In the US, Donald Trump won a second presidency in 2024, after pledges to end foreign wars and cut the cost of living.
Yesterday, he posted on the Trump-owned Truth Social platform, “Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A., and World, Safety and Peace. ONLY FOOLS WOULD THINK DIFFERENTLY!”
