
NCBA Investment Bank
June 18, 2025 at 06:00 AM
*Israel-Iran war puts Kenya G-to-G fuel deal to the test*
Kenya’s fuel supply deal with three state-owned Gulf firms faces a critical test in the wake of the war between Israel and Iran, which threatens oil supplies, freight charges, and an increase in fuel prices. Israel’s decision to start attacking Iran’s energy infrastructure, with strikes on at least two gas processing plants and two fuel depots, has poured more risk into the global energy markets. Risks of traffic disruptions through the Strait of Hormuz, a narrow waterway in the Middle East that supports the export of a third of the world’s seaborne oil and gas, could affect the price and availability. This looks set to pile pressure on the renewed contract with Saudi Aramco, Emirates National Oil Co. and Abu Dhabi National Oil Co, given the pact guarantees Kenya a steady supply of petrol, diesel, kerosene and jet fuel despite a global energy crunch. Source: Business Daily
