VLSFO prices at the three main Asian bunker hubs surged over the weekend, moving in step with Brent’s rally after the latest escalation in the Middle East.

Price changes on the day from Friday to 15.00 GMT today:

• VLSFO price up $59/mt to $586/mt in Zhoushan
• VLSFO price up $59/mt to $581/mt in Singapore
• VLSFO price up $40/mt to $560/mt in Fujairah

Brent crude climbed by almost $8/bbl on the day from Friday after US and Israeli forces carried out a joint strike on Iran that killed the Islamic Republic’s Supreme Leader Ayatollah Ali Khamenei. Iran responded with direct strikes on Gulf neighbours, including the UAE and Saudi Arabia, and disrupted traffic through the Strait of Hormuz.

The geopolitical shock has reverberated across bunker markets globally, particularly at key East of Suez ports such as Singapore, Fujairah and Zhoushan.

“For now, this is a pricing event — not a physical supply shock,” said Claire Jungman, director of maritime risk and intelligence at Vortexa.

At Zhoushan and Singapore, VLSFO prices climbed by $59/mt over the weekend to $586/mt and $581/mt, respectively, while Fujairah increased by $40/mt to $560/mt. All three ports are now at their highest levels since June last year.

In June 2025, prices peaked at $587/mt in Zhoushan, $574/mt in Singapore and $563/mt in Fujairah amid similar geopolitical turbulence, when Israeli strikes on Iranian targets briefly sent Brent higher and fears over Gulf oil route disruptions spilled into bunker markets.

The current rally follows the same pattern. As Brent spikes, bunker suppliers reprice swiftly because VLSFO tracks crude as a refinery-derived product. Even without a confirmed shutdown, threats to the Strait of Hormuz — which carries roughly a fifth of global oil flows — are embedding a geopolitical risk premium into oil and fuel oil markets, with traders pricing disruption before it materialises.

“Across the grades, premiums are up,” a Singapore-based trader said.

Although most regional ports remain operational and no physical shortage has emerged, insurers, charterers and traders are factoring in potential delays or further escalation, adding speculative support. Suppliers are also lifting spot offers to reflect higher forward replacement costs, while rising war risk premiums and Gulf freight rates are tightening delivered fuel economics into Asia, underpinning premiums in hubs such as Singapore and Zhoushan.

One source commented that VLSFO prices “will be higher” in Zhoushan.

Even so, current levels remain below those seen in January last year, when mid-January crude strength — following sweeping US sanctions on Russian oil — pushed bunkers to $613/mt in Singapore, $607/mt in Fujairah and $604/mt in Zhoushan.

The same dynamics are lifting HSFO. Prices have climbed by $50/mt in Zhoushan to $515/mt, by $35/mt in Singapore to $478/mt, and by $26/mt in Fujairah to $455/mt.

In Taiwan, a trader reported “no significant impact” on physical availability. However, the Brent rally triggered by the Middle East escalation has “influenced” pricing sharply over the weekend.

By Tuhin Roy

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