Following US and Israeli attacks on Iran last week, Iran has closed the Strait of Hormuz on March 1, 2026, surging global oil prices and threatening fuel costs in Kenya just before the Energy and Petroleum Regulatory Authority (EPRA) review on March 14.
In a sharp escalation of the US-Iran conflict—sparked by US and Israeli strikes on Tehran on February 28—Iran closed the Strait of Hormuz on March 1, 2026, halting about 20% of global oil and gas flows. This has driven international oil prices toward USD 100 (Ksh12,800) per barrel, weeks before Kenya's EPRA announces new pump prices.
The closure disrupts cost-effective shipping from Gulf producers like Saudi Arabia and UAE, forcing expensive detours around Africa. Kenya's government-to-government oil deals now face higher insurance and transport costs to Mombasa, elevating landing costs—a core factor in EPRA pricing.
The prior EPRA review (February 15–March 14, 2026) had cut prices amid falling costs: Super Petrol to Ksh178.28 (down Ksh4.24, landing cost -2.69% to Ksh74,239.91/m³); Diesel to Ksh166.54 (down Ksh3.93, -6.37% to Ksh75,587.29/m³); Kerosene to Ksh152.78 (down Ksh1.00, -1.44% to Ksh77,135.62/m³). Pre-closure tensions had already lifted crude above USD 67 (Ksh8,500)/barrel, the highest since August 2025.
