ASIAN bunker prices have risen sharply as the turmoil in Iran threatens supplies to the eastern hemisphere.

Data from commodity index firm General Index (GX) show that Singapore very low sulphur fuel oil prices rose 9.07% while intermediate fuel oil (IFO380) prices rose by 9.17%. GX yesterday assessed fuel prices at $562.25 per tonne for VLSFO bunkers and $473.35 per tonne for IFO280.

Singapore bunker prices are used as a benchmark for bunker prices in the rest of Asia, with varying premiums added on depending on the grade and ports where they are delivered.

“Bunker fuel supplies are expected to be significantly disrupted in the near term, as Iran doubles down on the closure of the Strait of Hormuz, leading to the loss of fuel oil supplies from key producers like the UAE, Iran, Iraq, Kuwait, and Saudi Arabia,” GX energy analyst Li Chengming told Lloyd’s List.

While the legitimacy of Iran’s closure of the SOH remains questionable, most shipping lines are actively avoiding the strait because of safety concerns. This has led to a lower availability of tankers to load fuel oil cargoes from the port of Fujairah on the SOH.

Supplies started depleting in the world’s top bunkering hub before the Iran turmoil began. Li said: “Singapore’s residue fuels have come down from its December highs and settled at 22.63m barrels as of February 25, largely in line with the 2025 average of 22.82m barrels, London Stock Exchange Group data shows.”

Singapore-based bunker traders have started to see the supply disruption affect current spot trades, with signals for higher Asian prices going forward. “Bunker prices have revised up by $80-$120 per tonne since last Friday for Singapore,” Synergy Asia Bunkering director Steven Low told Lloyd’s List.

Low sulphur marine gasoil prices are also on the rise, with Low seeing prices increase by another $80 per tonne today.

Low also expects premiums for April low sulphur fuel oil cargoes to be in the double digits to the Asian benchmark for bunker fuel contract prices. Low this month paid a premium of $6-$8 per tonne for cargoes scheduled for delivery in March.

He also noted that supply concerns have transcended Singapore. “Vietnam for now has stopped selling bunkers to conserve fuel for domestic consumption,” Low added.

The impact on HSFO prices is likely to be more pronounced than VLSFO in the coming months. Li noted that there has been a rise in ships being fitted with scrubbers in Singapore.

“More ships are installing scrubbers as the economics of installation improves, potentially supporting Singapore 380cst HSFO demand,” he said.

You snooze you lose

With supplies depleting, bunker traders are now in a pinch for cargoes. One Singapore-based trader noted that bunker suppliers were giving traders a mere five minutes to decide if they would like to procure cargoes.

This is in contrast to typical windows which can last up to an hour.

“Seeing that brent prices keep increasing, suppliers do not hold prices for long as well,” the trader told Lloyd’s List.

Singapore bunker traders are expecting supplies to remain tight for an extended time. Low sees the current turmoil in the Middle East being prolonged.

Because of the tightness, bunker traders in Singapore are snapping up deals quickly to stockpile inventories which will help hedge against any further volatilities.

“Recent spot bunkering trades remain active in Singapore, as vessel operators seek to lock in prices to avoid further market risks,” Li said.

All eyes on Fujairah

Vessel operators and bunker traders are keeping a close watch on the port of Fujairah. The port is a key hub for vessels transiting the SOH, lifting cargoes from key bunkering producers in MEG.

It is also the world’s third largest oil and products storage centre in the world according to price reporting agency Argus Media.

Port operations at Fujairah remain undisrupted and continue as usual. But shipowners are still hesitant about calling at Fujairah with the ongoing attacks.

Argus also noted that high war risk premiums are making travel to Fujairah costly, potentially keeping bunker demand subdued. The attacks on Iran have also reduced supplies of HSFO to the UAE “which has been a key supplier to Fujairah despite US-led sanctions,” Argus reporter Elshan Aliyev said.

But given that gas loadings continue in Iran, it could be possible for product tankers to continue loading up on fuel oil cargoes for delivery to Fujairah and other major hubs.

The current uncertainty in Fujairah has led to a divergence in bunker prices.

GX data shows VLSFO bunkers climbing by 8.44% yesterday while IFO380 bunkers weakened by 3.09% to $562.00 per tonne and US$407.25 per tonne, respectively.