Daily Brief: Global Fuel Prices Surge 3.1% as Iran Conflict Rattles Markets

Global fuel prices posted a synchronized 3.1% weekly increase across five key markets on May 4, with Norway recording the highest absolute gasoline price at $3.564 per liter. Finland followed at $2.686/L, while Thailand reached $2.473/L. Taiwan, despite its lower base of $1.550/L for gasoline, matched the same percentage rise, reflecting broad-based upward pressure linked to the ongoing war in Iran, as reported by Euronews and the Council on Foreign Relations.

In Europe, Norway's record diesel prices have prompted warnings from experts that the peak is still ahead, per Anadolu Ajansı, while the country's prime minister told Reuters that Europe should not cap gas prices. Finland's economic growth forecast was cut to 0.6% by the Helsinki Times, and the IRU noted continued fuel price climbs. In Asia, Thailand confirmed oil reserves sufficient for 108 days amid volatility, according to The Straits Times, and is weighing a cut in oil tax as prices soar, per Reuters. New Zealand saw diesel hit $2.856/L, with Air New Zealand cutting flights due to the fuel surge, as Reuters reported.

Looking ahead, [news reports indicate] driving energy rationing globally, per Time Magazine, and demand destruction may be throttling consumption, according to a Fortune report. Taiwan has moved to cushion price shocks and cap oil-price rises, as reported by Anadolu Ajansı and Bloomberg, while Norway's spare capacity is exhausted, per OilPrice.com. Markets will watch for further government interventions and potential demand-side adjustments in the coming days.