Fuel prices in “Israel” are set to rise sharply as the ongoing war on Iran continues to impact global energy markets and regional economies.

The Israeli Energy Ministry announced that the price of 95-octane gasoline will increase to 8.05 shekels per liter starting Wednesday, up from 7.02 shekels, marking a 14.7 percent increase.

According to the Ministry, the price hike is primarily driven by a nearly 50 percent increase in fuel prices across Mediterranean countries, linked to rising global oil costs amid the war.

The new price marks the highest level in more than three and a half years, approaching the previous peak of 8.08 shekels per liter recorded in July 2022.

The surge reflects the growing economic repercussions of the confrontation, which has disrupted energy flows and heightened volatility in international oil markets.

Internal divisions over government response

Israeli media reported that authorities are considering measures to mitigate the impact of rising fuel costs, including a potential reduction in excise taxes on fuel.

However, the Finance Ministry has opposed such a move, citing increased wartime expenditures and the need to maintain fuel tax revenues amid mounting financial pressures.

The debate highlights internal divisions over how to manage the economic fallout of the war, as costs continue to rise domestically.

Global oil shock intensifies as Hormuz disruption spreads

The surge in fuel prices in “Israel” comes as the global energy market faces mounting disruption linked to the ongoing war on Iran, particularly following the effective blockade of the Strait of Hormuz, one of the world’s most critical oil transit routes.

A recent report warned of a “rolling supply disruption moving westward," with oil flows from the Gulf significantly reduced since the outbreak of the war on February 28. Shipments that had departed before the war have largely dried up, leaving countries increasingly exposed to both rising prices and physical shortages.

Southeast Asia has already experienced a sharp decline in supply, with oil exports to the region falling by 41 percent, while early signs of shortages have begun to emerge in parts of Africa. Europe is expected to feel the impact in the coming weeks, with the United States likely to face delayed but sustained price pressures.

Far-reaching consequences of war

The crisis reflects the far-reaching consequences of the US-Israeli war on Iran, which has transformed the Strait of Hormuz into a focal point in the confrontation. As supply chains tighten and reserves are depleted, the effects are no longer limited to price increases but extend to questions of availability and energy security.

Iranian officials have stated that maritime traffic remains possible for non-hostile vessels under specific conditions, while placing responsibility for instability in the waterway on the US and “Israel”, citing their continued military escalation.

As the disruption spreads across global markets, the rising fuel prices inside “Israel” appear as one manifestation of a broader energy shock, one that is increasingly affecting countries far beyond the immediate war.

Source:Websites