Shipping companies are facing an extra €340 million a day in fuel costs because of the latest conflict in the Gulf, according to analysis from Transport & Environment (T&E).

The group said shipowners have incurred more than €4.6 billion in additional fuel costs since 28 February, as bunker prices have climbed sharply. In Singapore, very-low-sulphur fuel oil (VLSFO) has risen to €941 per tonne, up 223% since the start of 2026, while LNG prices have increased by 72% since early March.

T&E said the shipping sector remains highly vulnerable to fuel market disruption because 99% of the global fleet still operates on fossil fuels. It argued that wider use of efficiency measures, electrification and e-fuels would leave the industry less exposed to price swings and supply shocks.

According to the organisation, the recent rise in conventional fuel prices has also made alternative fuels more competitive. Its analysis found that the gap between marine gas oil (MGO), one of the more expensive fossil-based marine fuels, and e-fuels has narrowed to almost parity, at around 5%, in some ports.

Eloi Nordé, shipping policy officer at T&E, commented: "Chaos in the Strait of Hormuz is putting global maritime trade under the spotlight. But it's on the oil markets where its impact will be felt the most. The war is costing the industry millions every day. Some governments and parts of the industry have spent the last year bashing green maritime measures as being too expensive, yet those costs pale in comparison to this super-disruption. If anything, this crisis should be the catalyst for more investment in European e-fuels and greater uptake of energy efficiency measures to avoid fossil fuel shocks in the future."

T&E explained that, unlike fossil fuels, e-fuels do not depend on geopolitically exposed trade routes and can be produced domestically. It argued that scaling up local production would help reduce exposure to outside shocks while improving energy security.

The group also highlighted the potential for electrification in short sea cargo shipping and ferry operations, as well as the role of efficiency measures for deep-sea vessels, including slow steaming and wind-assist technology.

Its analysis said 20% of EU ferries could already be electrified at a lower cost than fossil-fuelled equivalents. It also said that modern wind-assist systems could reduce fuel consumption for oceangoing vessels by as much as 18%.

Nordé stated: "Ships that can be electrified, like short sea cargo vessels and ferries, are the low-hanging fruit that would reduce pressure on the fuel market. At the same time, efficiency measures for ocean-going vessels like slow steaming and wind-assistance can deliver huge fuel savings."

T&E called on European policymakers to speed up the shift towards a more resilient and competitive maritime sector by backing a European e-fuels industry through targeted financial support for green e-fuels and stronger FuelEU Maritime targets.

The cost comparison in the analysis was based on production costs for e-ammonia and bunkering prices for MGO at Rotterdam, Fujairah, Houston and Singapore.