I just reviewed what's happening with fuels in Asia, and it's quite intense. HSFO prices are sky-high in Singapore, with increases of over 40% since the conflict escalated in the Strait of Hormuz. It's not just high-sulfur fuel oil that's skyrocketing; low-sulfur fuel oil is also rising around 30%. Basically, shipments from the Middle East are completely stalled.

What's interesting is that this is causing a domino effect throughout Asia. Singapore, the region's main shipping fuel hub, is seeing its reserves deplete faster than expected. Operators who spoke with Reuters are quite clear: there's panic in the market. One mentioned that everyone is desperate to secure oil by mid-March, and freight rates are so high that arbitrage to Singapore is practically nonexistent.

Alternative supply options are limited. Some are looking to America, but volumes are insufficient. Venezuela recently opened its market, but its HSFO exports are staying in Western markets. Russia and Iran produce, but international sanctions complicate things for most buyers. Iranian shipments remain blocked in the Strait.

What catches my attention is that this will likely impact global shipping costs. If fuel prices stay this high, transportation expenses will rise, and that will be reflected in prices everywhere. Asian importers are in urgent mode, trying to secure HSFO before reserves run out. But with such limited supply, I don't see how prices will drop quickly. Operators say they expect prices to keep rising.