Middle East Conflict Drives Volatility in Global Fuel Markets, Triggering Strategic Oil Releases
The ongoing conflict in the Middle East is significantly disrupting global fuel markets, leading to price increases and prompting an unprecedented release of strategic oil reserves from multiple countries, including the Netherlands. These actions aim to stabilize prices and mitigate potential supply disruptions.
Diesel and LNG Price Surges
Diesel markets have been particularly affected by the Middle East conflict, threatening a potential slowdown in the global economy [Reuters]. Asia’s Low Sulfur Fuel Oil (LSFO) cash premium has reached a record high due to concerns over Middle East supplies, causing Asian refiners to reduce production and countries to hold back exports [SP Global]. Rotterdam’s LNG bunker price has also surged, driven by gas market volatility and supply risk concerns related to the crisis [Engine Online].
Global Oil Reserve Release
In a coordinated effort with international partners, the Dutch government is participating in the largest global oil release in history, contributing over 5.4 million barrels from its strategic reserves [NL Times]. This release is intended to counter price hikes and ensure supply, bypassing potentially blocked or unsafe routes like the Strait of Hormuz.
Fuel Prices in the Netherlands
While fuel prices in the Netherlands have dropped slightly, they remain high. As of March 11, 2026, the recommended retail price for Euro95 petrol was 2.447 euros per liter, down from 2.453 euros the previous day. Diesel prices had recently exceeded 2.50 euros per liter for the first time. Prior to the conflict, diesel cost 2.09 euros per liter, and petrol was priced at 2.28 euros [NL Times].
Impact and Timeline
It is expected to accept approximately four weeks for the released oil to be refined into gasoline and other fuels before any noticeable impact is seen at the pump [NL Times]. The market is responding to geopolitical tensions, with concerns over reduced gas supply, particularly through the Strait of Hormuz, where over 20% of the world’s LNG transits [Engine Online].