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Tuvalu Faces Fuel Shortage as Middle East War Tightens Global Supply

Financial Times Companies •
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Tuvalu’s small Pacific nation, home to 11,000 people, reports a fragile fuel supply after the Strait of Hormuz conflict cut global shipping lanes. Fuel prices have jumped 40% for diesel and 30% for petrol, straining households and businesses.

The government says supplies are stable for now, yet no guarantee exists beyond June. Energy Minister Simon Kofe warned that the sole fuel contractor sources from Singapore and South Korea, leaving Tuvalu vulnerable to international market swings.

In a region where 80% of energy comes from imports, the crisis underscores the need for regional cooperation. Australia is aiding storage upgrades, while UNDP stresses renewable transitions as a hedge against external shocks. For now, Tuvalu’s economy—reliant on fishing, the .tv domain, and remittances—must navigate rising costs and limited logistics.

The situation illustrates how geopolitical tensions ripple into remote economies, forcing small states to balance short‑term survival with long‑term energy resilience.