The Fuel Crisis Triggered by the 2026 Iran War: Severe Impacts on Small-Scale Fisheries Worldwide

               Since the outbreak of the 2026 Iran War on 28 February, when the United States and Israel launched coordinated airstrikes under Operation Epic Fury targeting Iranian military infrastructure, nuclear facilities, and leadership—including the assassination of Supreme Leader Ali Khamenei—the global energy market has been thrown into turmoil. Iran’s retaliatory restrictions on shipping through the Strait of Hormuz, a chokepoint for roughly 20% of the world’s oil supply, have caused crude oil prices to surge dramatically. Brent crude, which traded around $70 per barrel before the conflict, spiked above $100–$119 per barrel within weeks, driving sharp increases in diesel and gasoline costs worldwide.

For the small-scale fisheries sector— which employs tens of millions of fishers and fish workers and supplies a significant share of the protein consumed in coastal communities across the Global South—this fuel crisis has been catastrophic. Small-scale (or artisanal) fishers, who typically operate low-tech, motorized boats with limited capital, are disproportionately vulnerable. Fuel often accounts for 30–50% of their operational costs. With diesel prices rising 60–120% in many markets since late February, entire communities are facing reduced fishing effort, collapsing incomes, and threats to food security.

Small-scale fishers and fish workers form the foundation of the global fisheries sector. According to longstanding FAO data and regional studies, they produce a large portion of the fish consumed locally in developing countries and support food security for billions. Unlike industrial fleets, these operators fish closer to shore with smaller vessels, often without access to government fuel subsidies, modern efficiency technologies, or diversified income sources. Their livelihoods depend directly on affordable diesel for daily trips.

The sector was already strained by previous shocks, including the 2022 Russia-Ukraine war and post-COVID supply disruptions. The 2026 Iran War has amplified these vulnerabilities through an abrupt energy shock that no one in the fishing communities could have anticipated or prepared for.

In the five weeks since the war began, diesel price hikes have forced many small-scale operators to curtail or halt activities. Reports from Southeast Asia, Africa, and the Pacific illustrate the pattern:

– In the Philippines, fisherfolk groups such as Pamalakaya report diesel costs rising nearly 120% in March, with municipal fishers facing increases of around 60%. Trips that once lasted 8–10 hours have been shortened to 4–6 hours, or abandoned entirely in areas like Cavite. Many fishers can no longer cover fuel expenses, let alone generate profit. Fish traders are passing costs onto consumers, driving up seafood prices and reducing local supply.

– In Ghana, a 2025 study on fuel price shocks (already relevant before the current escalation) documented how oil price volatility increases expenses, reduces fishing frequency, and leads to declining opportunities for small-scale fisherfolk. The latest surge has intensified these effects, with households reporting higher living costs and reduced catches.

– Across Southeast Asia, vessels are staying in port because trips are no longer economically viable. Fuel accounts for such a high share of costs that even modest price increases push operators into the red. Processors and exporters face knock-on effects, while women in post-harvest roles—often the backbone of local markets—see incomes shrink.

– Five weeks after the escalation of the US-Israel war on Iran began on February 28, Sri Lanka’s small-scale fishermen are facing severe economic hardship as diesel and kerosene prices have surged sharply due to global oil supply disruptions. Domestic fuel prices rose by approximately 25–33% since early March. Diesel — the fuel of multi day fishing vessels — now costs around Rs 382 per litre, up by 79 rupees while kerosine ( the fuel of small fishing boats ) is up by 60 rupees to 255 rupees per litre.Many small-scale fishers, who operate traditional boats in coastal communities, say the higher fuel costs have made daily fishing trips unviable. With rationing now in place through a QR-code system limiting weekly diesel quotas, several operators have reduced or halted operations entirely. This has led to lower catches, falling incomes, and in some cases plummeting local fish prices due to the loss of many export markets and due to tightened supply .

 

– In Europe, even smaller-scale operators in places like Guernsey have warned that sustained high fuel prices are accelerating the decline of an already struggling industry, with potential long-term loss of heritage and employment.

These examples are not isolated. Similar stories are emerging from Latin America, the Caribbean, South Asia, and Pacific island nations, where small-scale fisheries are lifelines for coastal economies. Global food prices rose 2.4% in March 2026, partly driven by higher energy and fertilizer costs linked to the conflict, further squeezing fisher incomes while raising the price of the fish they sell.

The fuel crisis is not merely an economic issue—it is eroding livelihoods and community resilience. Reduced fishing effort means lower household incomes, pushing families toward debt, migration, or alternative (sometimes unsustainable) activities. In some communities, reports note increased social pressures, including a rise in vices as economic desperation grows.

Ironically, while fish prices at market may rise due to supply shortages and higher transport/processing costs, many small-scale fishers see little benefit. They sell at the beach or to middlemen who capture the margins, while the fishers themselves absorb the fuel burden. This dynamic threatens local food security in regions where fish provides the primary affordable protein source. The crisis also intersects with environmental pressures. With fewer viable trips, some fishers may intensify effort in remaining accessible grounds or resort to illegal gear to maximize short-term returns—exacerbating overfishing in already stressed stocks.

Impacts are most acute in the Global South, where small-scale fisheries dominate and fuel subsidies, when available, are often inadequate or poorly targeted. Industrial fleets may absorb costs through scale or pass them on more easily; small-scale operators cannot. In Asia and Africa, where millions depend on artisanal fishing, the war’s energy shock risks reversing gains in poverty reduction and sustainable development. Even in higher-income contexts, the absence of tailored support leaves small-scale fishers exposed. The FAO has long highlighted the sector’s energy dependence and vulnerability to price volatility; the current crisis validates those warnings on a global scale.

Governments have announced fuel subsidies or relief packages in some countries, but distribution has been slow and insufficient, as noted by fisherfolk organizations in the Philippines and elsewhere. Broader international responses have focused on military and diplomatic dimensions of the Iran War, with less immediate attention to downstream sectoral crises.

The World Forum of Fisher  people (WFFP) and allied movements emphasize that small-scale fisheries require targeted, equitable support. This includes:

– Immediate, transparent fuel subsidies or price controls directed at artisanal operators.

– Investment in fuel-efficient technologies, such as improved engine designs, sail-assisted propulsion, or hybrid systems suitable for small boats.

– Strengthened social protection and alternative livelihood programs to build resilience.

– Recognition of small-scale fishers’ rights under international guidelines (e.g., the Voluntary Guidelines for Securing Sustainable Small-Scale Fisheries) in any crisis response.

Longer-term, the sector must accelerate the transition toward lower-carbon, more efficient operations—not only to mitigate climate impacts but to reduce dependence on volatile fossil fuel markets.

The 2026 Iran War has exposed the fragility of global energy systems and their direct link to food-producing sectors like small-scale fisheries. Within weeks, a conflict thousands of kilometers away has disrupted the daily reality of fishers from the Philippines to Ghana and to the shores of sri lanka. These communities did not cause the crisis, yet they bear a disproportionate burden.

WFFP stands in solidarity with all affected small scale fisher people worldwide. We urge governments, international organizations, and civil society to prioritize rapid, meaningful support for small-scale fisheries. Without it, the fuel crisis risks not only short-term hardship but long-term erosion of the sector’s capacity to feed communities and sustain coastal economies.

The stakes are clear: small-scale fishers are essential to global food security and sustainable resource use. Protecting them during this fuel crisis is not charity—it is a necessary investment in resilient, equitable, and sovereign food systems. The world must act now, before the impacts deepen further.

                                                                                      #protectsmallscalefishers