Marine fuel market participants in the Middle East’s bunkering hub of Fujairah are cautiously optimistic and a little anxious about what will happen now that the US and Iran have agreed to ease regional tensions.

23 June 2026

As part of the agreement, the US has allowed unlimited sales of Iranian crude and refined products, which could see a return of Iranian high-sulphur fuel oil (HSFO) to Fujairah.

While this offers a potential path to normalisation of the trading environment, which has been heavily affected by shipping disruptions in the strait of Hormuz, local traders, suppliers, and buyers remain somewhat sceptical about the timeline, enforcement, and practical implementation of agreed actions.

Iran had been a key supplier of HSFO to Fujairah, accounting for 25pc of all imports, or 70,000 b/d, in 2025, oil analytics firm Vortexa’s data show.

These supplies were cut off as relations between the UAE and Tehran deteriorated. During the war, Iran repeatedly attacked Fujairah’s infrastructure, with Tehran accusing the UAE of collaborating with the US and Israel.

Some bunker suppliers cannot see the return of stable trade, at least in the near future.

“We are hopeful, but there is anxiety in the market that relations have received too much damage,” a senior Fujairah-based bunker supplier said. “Everything hinges on how bilateral diplomatic relationships between the UAE and Iran navigate this transition phase.”

Others said the economic benefits of the trade will help to overcome difficulties in bilateral relations. But, in the post-sanction period, the fuel will not be as cheap as before, they said.

Even if sanctions are smoothly lifted, local suppliers anticipate intense competition for Iranian straight-run HSFO from Asian refiners with upgraded secondary processing units, which will be eager to secure supply as a highly economical cracking feedstock.

“Fujairah won’t be the only buyer in town once the Iranian HSFO is freed from shackles,” a regional fuel oil trader said. “Once those barrels are fully legitimised and the banking channels clear, big players will return to feed the appetite of massive, sophisticated refining complexes across Asia.

“The resulting premium structure could easily price local bunker blenders right out of the market,” the trader said.

For the very low-sulphur fuel oil (VLSFO) sector, Fujairah’s supply recovery remains heavily reliant on consistent product flows from Kuwait’s 615,000 b/d al-Zour refinery. Shipments from the plant will be capped, at least until late in the third quarter.

“The region is entering a peak summer demand period and Kuwaiti domestic power utilities will inevitably prioritise burning low-sulphur fuel oil for electricity and air conditioning over exporting it,” said a bunker trader.

Combined with lingering security anxieties regarding transits through the strait of Hormuz, the Fujairah market is not factoring in prompt VLSFO supply from al-Zour anytime soon.

Fujairah VLSFO premiums against Singapore cargo benchmarks hit unprecedented highs of $700/t earlier in June, due to an acute local product shortage.

Premiums fell ahead of an arrival of a 100,000t low-sulphur fuel oil cargo from Nigeria’s Dangote on 20 June, with more suppliers emerging with offers for end-June. But premiums remain above $300/t, because there have been sharper falls in the Singapore cargo benchmark price and freight netbacks remain high. In normal market conditions, the VLSFO bunker premium is in a range of $5-15/t.

By Elshan Aliyev

Photo credit and source: Argus Media
Published: 26 May, 2026

The following bunker report has been provided by freight market information provider Baltic Exchange for post on Singapore bunkering publication Manifold Times:

All values are in US$/metric ton, all-in (invoice price), delivered on board
Delivery in 7-10 days
ISO 8217:2010
IFO 380 3.5% Sulphur
IFO 380 0.5% Sulphur
DMA 0.1% Sulphur

Fujairah – Offshore Anchorage Area
Gibraltar – Anchorage area
Houston – Houston Harbor
Panama – (Pacific) dangerous cargo area, Balboa
Rotterdam – Waalhaven Maasvlakte range
Singapore – Anchorage, under SBA Scheme
Zhoushan – Southern anchorage area

Submitted weekly at Close of Business UK time Daily

Panellists:
Cockett Marine Oil Pte, Island Oil Limited, KPI OceanConnect, Monjasa A/S, NSI Marine and Transparensea Fuels

Photo credit and source: Baltic Exchange
Published: 26 June, 2026

The following article regarding bunker fuel availability in the Americas region has been provided by online marine fuel procurement platform ENGINE for post on Singapore bunkering publication Manifold Times:

• Houston bunker demand softens
• Balboa HSFO supply tight
• Paranagua lead times extended

North America

Bunker demand in the port of Houston has eased compared to the past few weeks. Demand has seen the sharpest decline for VLSFO, a trader tells ENGINE.

Recommended lead times for VLSFO and HSFO are 6-7 days, and LSMGO requires 4-5 days this week.

The Atlantic hurricane season is currently ongoing. No major storms have been reported so far, but shippers are seeing heavy thunderstorms and severe weather systems moving through the region.

These weather conditions could trigger periodic closures of the Houston Ship Channel and cause loading delays, a source said.

Availability is normal at the nearby bunkering hub, Galveston Offshore Lightering Area (GOLA). All three fuel grades can be delivered between 5-8 days, a trader told ENGINE.

Weather conditions could cause brief disruptions at GOLA from 25-28 June due to high winds and elevated seas. Short delays are possible, although prolonged disruptions are not expected.

This week, sea fog is not expected to pose a major disruption across the US Gulf Coast. Most key ports, including Houston/Galveston, Corpus Christi, Brownsville, Freeport, Port Arthur, and Lake Charles, are forecast to experience low sea fog and visibility risks.

Moderate visibility restrictions are expected only intermittently at ports such as Mobile Bay, Pascagoula, New Orleans and Port Fourchon, with any disruptions likely to be brief and localised.

On the East Coast, the port of New York has seen strong bunker demand this week. Availability of all three conventional fuel grades has improved with some suppliers, while others are facing resupply challenges, a source said.

VLSFO and HSFO require lead times of 5-6 days, while LSMGO can be delivered within 2-3 days.

Weather conditions at the port are favourable, with winds mostly between 5-10 knots, occasionally increasing to 20 knots, and wave heights of around 2 feet.

There is a chance of thunderstorms and showers later today, which could disrupt port operations, a trader told ENGINE.

On the West Coast, bunker demand has held steady at the ports of Los Angeles and Long Beach, although some suppliers have seen a slight dip in demand.

HSFO, VLSFO, and LSMGO can be delivered within lead times of 5-7 days at both ports.

Latin America and the Caribbean

In Panama, bunker demand is steady, and availability across all three conventional fuel grades is good at Balboa and Cristobal.

VLSFO and LSMGO can be delivered within lead times of 3-5 days.

HSFO supply in Balboa is under pressure and is expected to tighten further this week, with suppliers now requiring at least seven days to deliver the grade.

In Colombia, prompt supply of VLSFO and LSMGO is available. Recommended lead times at the ports of Cartagena, Santa Marta, and Barranquilla are 3-4 days.

In Brazil, bunker availability is good at the port of Santos. However, the port is facing congestion that is expected to continue over the next 4-5 days.

VLSFO and LSMGO are available in Santos with lead times between 5-8 days, a trader said.

Availability is also normal in Rio Grande, Belem, and Vila do Conde, with suppliers recommending lead times of 4-6 days.

In Rio de Janeiro, availability of both grades is good, with the earliest delivery dates on 27-28 June.

Paranaguá has reported tight availability this week, with the earliest delivery date now on 7 July, a source told ENGINE.

In Argentina’s Zona Comun, bunkering operations are currently suspended due to wind gusts exceeding 20 knots.

Availability of VLSFO and LSMGO is steady at the anchorage, where both grades are supplied by barge. Lead times are 5-7 days this week.

By Gautamee Hazarika

Photo credit and source: ENGINE
Published: 26 June, 2026