Lebanon is witnessing a sharp increase in fuel prices as global oil markets experience heightened volatility due to geopolitical tensions, particularly between the United States and Iran. Since late January, the cost of gasoline and diesel has risen by nearly 100,000 Lebanese pounds, even during periods when global oil prices experienced modest declines.

Local consumers are struggling to understand the drivers behind these increases. Georges Brax, a member of the Lebanese Gas Station Owners Syndicate, told Annahar that crude oil recently dropped by about $3 per barrel after U.S.-Iran negotiations were announced.

“However, prices rebounded following the downing of an Iranian drone, highlighting how sensitive markets remain to regional events,” he said.

Brax noted that military tensions in the Middle East have pushed prices back to around $70 per barrel.

“Investors remain cautious about any escalation that could affect oil shipments, even as diplomatic talks begin,” he explained, emphasizing that Iran continues to pump over 3.3 million barrels of oil per day despite international sanctions, keeping global prices elevated.

A key factor for Lebanon’s rising fuel costs is the strategic Strait of Hormuz, through which about 20 percent of the world’s oil supply bound for Asia passes. Any conflict affecting this passage could immediately impact shipping and, by extension, domestic fuel prices.

For Lebanese households and businesses, the consequences are immediate. Rising fuel costs exacerbate an already challenging economic environment, affecting transportation, electricity generation, and the cost of basic goods. Local distributors are also closely monitoring how global market shifts and regional instability translate into retail prices.