Renewed increases in transport fuel surcharges are once again likely following a sharp rise in oil prices caused by escalating tensions across the Middle East.

Fighting between Yemen’s Houthi movement and Saudi-backed forces has intensified during the past 2-3 weeks. Houthi missile and drone attacks have targeted southern Saudi Arabia, including energy infrastructure, while Saudi and Yemeni forces have responded with air strikes.

The Houthis have also advanced along Yemen’s western coast, strengthening their position close to the Bab el-Mandeb Strait, one of the world’s most important shipping routes. Meanwhile, an attack blamed on another Iran-backed militia has disrupted Saudi Arabia’s East–West Pipeline, which carries oil to the Red Sea and provides an alternative export route when the Strait of Hormuz is restricted.

These developments have increased concerns about Middle Eastern oil supplies and the shipping routes used to transport them. Brent crude has spiralled this month to around $108 per barrel, representing an increase of around 15% in three weeks.

Naturally, higher oil prices impact every form of domestic and international transport, which will almost certainly affect fuel-adjustment mechanisms used by airlines, shipping lines and road hauliers to recover increased operating costs.

However, pump prices and fuel surcharge adjustments often lag behind movements in Brent crude and it may be 2-3 weeks before they feed through into freight rates and transport surcharges.