- Brent crude reached a five-month high, rising 5.7% to US$81.40
- Iran threatened to close the Strait of Hormuz, crucial for 20% of global oil and 30% of liquefied natural gas
- Zimbabwe already has the highest fuel prices in Africa; the price spike will worsen this situation
Harare-Oil prices have skyrocketed to a five-month high, with Brent crude surging 5.7% to US$81.40 a barrel before settling at US$78.39, with U.S. West Texas Intermediate rising 2.6% to US$75.76.
The spike followed U.S. airstrikes on Iran’s nuclear facilities at Fordo, Natanz, and Isfahan on Saturday, intensifying a conflict sparked by Israeli attacks on Iranian targets two weeks earlier.
Iran’s threat to close the Strait of Hormuz a critical artery for 20% of global oil and 30% of liquefied natural gas has sent markets into turmoil, foreshadowing steeper costs for fuel, shipping, and everyday goods.
For Zimbabwe, which already have highest fuel prices in Africa this will further push the prices .
The U.S. operation, ordered by President Donald Trump, targeted Iran’s nuclear infrastructure in a bid to cripple its weapons program. The attacks followed Israel’s June 13 assault on Iranian military and nuclear sites, which prompted Tehran to fire over 180 ballistic missiles at Israeli targets.
Iran’s parliament retaliated by voting to consider closing the Strait of Hormuz, a 21-mile-wide waterway that channels oil from Saudi Arabia, Iraq, Kuwait, and Iran, which pumps 3.3 million barrels daily.
Zimbabwe, heavily dependent on imported fuel, from South Africa’s ports and the Feruka pipeline from Mozambique’s Beira port. The surge in global oil prices directly inflates these costs, piling pressure on an economy already battered by structural weaknesses and external shocks.
Zimbabwe’s fuel market, already fragile, faces a dire outlook. Petrol and diesel prices, among the highest in the Southern African Development Community (SADC) region, stood at US$1.53 per liter in May 2025, despite a global oil price dip earlier this year.
The National Oil Company of Zimbabwe (NOCZIM), tasked with bulk fuel imports, has a history of mismanagement, often leaving the country with erratic supplies. Past shortages, sometimes dropping to 40% of normal levels, have paralyzed businesses and commuters.
A new price spike could trigger similar disruptions, especially as Zimbabwe struggles to secure foreign exchange for imports.
Zimbabwe’s multicurrency system, dominated by the U.S. dollar alongside the ZiG, exacerbates the problem. Fuel importers, desperate for scarce foreign exchange, face soaring costs as global oil prices climb, draining the country’s insufficient reserves.
Meanwhile, the countries economy hinges on agriculture and mining, both of which are highly sensitive to fuel costs. The 2024 El Niño drought slashed agricultural output by 15%, leaving 7.7 million people food insecure. Higher fuel prices will burden farmers who rely on diesel for tractors and irrigation pumps, especially as Zimbabwe pays more for fuel than neighbors like Zambia or Botswana. This could inflate the cost of maize imports, a staple for millions, as shipping rates rise with global oil prices.
The manufacturing sector, crippled by power outages due to low water levels at Lake Kariba, faces additional woes. Blackouts, lasting up to 12 hours daily, force businesses to use diesel generators, and rising fuel costs will balloon operating expenses.
The mining industry, a key growth driver with gold exports, may see margins shrink as transport costs climb, threatening Zimbabwe’s ambition to become a US$12 billion mining economy by 2030.
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