Egypt secures Libyan oil as Iranian war fuels Africa’s energy crisis

Monday 30 March 2026 - 16:30

By: Dakir Madiha

Egypt secures Libyan oil as Iranian war fuels Africa’s energy crisis

A month into the U.S.-Israeli military campaign against Iran, the effective closure of the Strait of Hormuz has disrupted African fuel markets, leaving countries from Kenya to Nigeria grappling with fuel shortages, soaring prices, and emergency rationing measures that threaten to deepen poverty across the continent.

Around 600,000 barrels per day of petroleum products, typically shipped from the Middle East to Africa, are now at risk as tanker traffic through this vital waterway has slowed to a trickle, according to the International Energy Agency. For some nations, these shipments account for nearly all their fuel demand.

Fuel shortages spread across the continent

The turmoil, triggered by Iran’s closure of the Strait of Hormuz following U.S.-Israeli attacks beginning on February 28, has caused cascading crises. In Kenya, about 20% of gas stations reported fuel shortages, which the Kenya Petrol Stations Association attributed to panic buying amid dwindling stock levels. Energy Minister Opiyo Wandayi denied claims of a systemic shortage, accusing retailers of hoarding supplies in anticipation of price hikes.

In Ethiopia, residents have spent nights in their cars, waiting in long lines for fuel, as the government raised fuel prices and expanded subsidies to protect consumers. South Sudan imposed electricity rationing in its capital, Juba, while Zimbabwe increased the ethanol mix in its fuel supply. Even Nigeria, a major crude oil producer, has faced a 40% surge in gasoline prices since the war began, with pump prices soaring to 1,350 naira per liter in Lagos.

Searching for alternative supplies

African governments are scrambling to secure new supply routes. Egypt is set to import at least one million barrels of Libyan crude oil per month after Kuwait declared force majeure on its oil exports due to shipping disruptions, according to Bloomberg. South Africa has turned to crude sourced from Nigeria, Angola, and Ghana, while also arranging six fuel shipments from India and West Africa.

Nigeria's Dangote Refinery, the continent’s largest with a capacity of 650,000 barrels per day, has been inundated with requests for supply from countries like South Africa and Kenya. However, analysts warn that Nigeria’s declining crude output and the refinery’s reliance on expensive external sources may limit its ability to meet regional demand.

Global trade growth under threat

The World Trade Organization (WTO) recently warned that the conflict is the primary downside risk for global trade in 2026. It projects that persistently high energy prices could shave 0.5 percentage points off global merchandise trade growth, reducing it to just 1.4%. WTO Director-General Ngozi Okonjo-Iweala cautioned that sustained energy price hikes could exacerbate risks to global trade, adding pressure on food security and costs for consumers and businesses.

Chevron CEO Mike Wirth stressed during last week’s CERAWeek in Houston: “The physical closure of the Strait of Hormuz has tangible consequences for global markets.” Oil industry leaders warn that if the strait remains closed beyond mid-April, supply disruptions will worsen significantly.