Fuel Prices in Israel Set to Rise Significantly from Next Week Due to Middle East Tensions

Fuel prices in Israel are expected to rise sharply starting next week, driven by escalating tensions in the Middle East and a surge in global oil prices. If the current trend continues through the end of next week, an increase of approximately 25 to 30 agorot per liter is anticipated to take effect between July 31 and August 1. This would push the price of 95-octane gasoline to around 7.75 shekels per liter for self-service and close to 8 shekels per liter for full service.

The recent price hike follows a period of decline after July 1, when fuel prices were reduced by 32 agorot from 7.80 to 7.48 shekels per liter, due to a relative easing of tensions with Iran and the reopening of the Strait of Hormuz, which lowered global oil prices. However, the situation has reversed as Brent crude oil prices jumped from about 77 dollars per barrel at the end of June to around 96 dollars currently, marking a 24% increase. Concurrently, the US dollar strengthened against the shekel from approximately 2.98 to 3.06 shekels, a rise of about 2.5%. Both factors directly impact fuel costs in Israel.

The final updated fuel price will be announced at the end of next week after the Ministry of Energy completes its calculations based on the average oil prices over the last five trading days and the representative dollar exchange rate. The price increase reflects concerns over potential escalation between the United States and Iran amid ongoing regional security tensions.