US-Iran Tensions Shake Markets, Oil Prices Surge and Directly Hit Albanians’ Wallets

The escalation of the conflict between the United States and Iran has sparked a new wave of increases in global oil markets, quickly trickling down to Albanian consumers. At filling stations across the country, the price of diesel has now reached 206 lekë per liter, a sharp spike from the 175 lekë recorded just three weeks ago.

Concerns over global supply have intensified significantly due to fresh clashes in the Middle East, giving a strong boost to fuel quotations. Brent crude oil is trading around $95 per barrel, following an increase of around 4% in the last 24 hours. Compared to the start of July, it has become nearly 20% more expensive.

Although deals on international markets are for future deliveries, the consequences in Albania materialized quickly. A check at fuel stations in the capital confirms that diesel is being sold at up to 206 lekë per liter, a difference of about 30 lekë above the last maximum price of 176 lekë, which had been set by the Transparency Board before the government disbanded this regulatory mechanism.

Gasoline has not lagged behind in this trend either, climbing from 166 lekë per liter, the last reference set by the board, to around 189 lekë nowadays.

Unlike the previous practice, where prices were approved administratively, they are now freely determined by traders themselves, based on import costs and movements on global exchanges.

If geopolitical tensions do not ease and diesel continues to become more expensive, the effects are expected to spread beyond fuel pumps. Higher transport costs are likely to translate into higher prices for various goods and services, straining both household budgets and business activity.