Dutch fuel prices fall slightly as Iran reopens and then restricts Strait of Hormuz

Fuel prices in the Netherlands fell slightly again on Saturday, even as renewed geopolitical tensions involving Iran raised concerns about future costs at the pump. The decline follows lower oil prices on Friday after Iran announced it would reopen the Strait of Hormuz, a critical route for global oil and gas shipments. Iran later reversed course, saying it would close the strait to shipping, which renewed uncertainty in the market.

After the oil prices dropped sharply on Friday, major oil companies subsequently reduced their recommended fuel prices at Dutch petrol stations by a few cents. As a result, the average advisory price for both Euro95 petrol and diesel now stands at 2.526 euros per liter in the Netherlands.

According to figures from consumer collective UnitedConsumers, prices had already been declining since a ceasefire between Iran and the United States was agreed more than a week ago. At the peak of recent price levels, motorists were paying up to 2.599 euros per liter for petrol and 2.819 euros per liter for diesel.

The latest developments have reintroduced volatility to the market. ING economist Rico Luman said there is still significant uncertainty, pointing to continued hesitation among shipping companies about whether tankers can safely pass through the Strait of Hormuz. That uncertainty, he said, remains unresolved.

Luman added that Saturday’s developments could slow further price declines for petrol and diesel. However, as long as the ceasefire in the Middle East holds, he does not expect a sharp new increase in fuel prices at the pump.

He also stressed the importance of Iran and the United States reaching quick agreements on peace and safe passage through the Strait of Hormuz. Without such arrangements, he warned, Europe could face fuel shortages within several weeks.

The International Air Transport Association (IATA) also issued a warning on Friday about the situation. Luman said such disruptions could push fuel prices higher at the pump if supply routes remain uncertain.