Fuel prices climb in war-hit Lebanon as Hormuz blockade blamed

Fuel prices have risen again in Lebanon, the National News Agency (NNA) reported, as Israel’s war in Lebanon and the U.S.–Israel war against Iran continue to batter the country’s economy. The price of 20 liters (5 gallons) of gasoline rose by 92,000 Lebanese pounds (about $1), while diesel rose by 127,000 pounds (about $1.40).

According to NNA, the increase stems from supply problems, especially with fuel from the Gulf region, which has been largely cut off since the United States and Iran blocked the Strait of Hormuz — the artery through which around 20 percent of the world’s oil and liquefied gas passed before the conflict.

The World Bank expects Lebanon’s economy to shrink by 6.4 percent this year, as the conflict turns the brief post-crisis recovery into a sharp economic downturn, with inflation deepening day by day.

The rise in Lebanon’s fuel prices mirrors the global wave of energy price hikes caused by the war — from Yemen, where the Houthis raised gasoline prices by about 10 percent this week, to China, where oil futures in Shanghai hit a record above $130 a barrel.

Source: Al Jazeera — LIVE blog