This is on the back of renewed confrontation between US and Iran affecting the Strait of Hormuz Kenyan consumers are staring at prolonged high fuel, electricity and commodity prices after renewed confrontation between the US and Iran reignited fears of fresh disruption to global supplies through the Strait of Hormuz.
The latest escalation comes just days after global oil prices had eased on hopes of a lasting peace agreement between Washington and Tehran, raising expectations that motorists and businesses would finally see lower fuel prices. Instead, this week attacks on commercial tankers in the Strait of Hormuz and retaliatory US strikes on Iranian military targets have pushed crude prices higher again, threatening to keep the cost of living elevated in Kenya.
United States launched fresh strikes after three commercial vessels were attacked in the strategic waterway, targeting more than 80 Iranian military assets, including missile sites, drone facilities and Islamic Revolutionary Guard Corps boats. The Trump administration also revoked temporary waivers that had allowed limited Iranian oil exports under a June 2026 memorandum of understanding, leaving the fragile truce hanging by a thread.
The Strait of Hormuz carries about one-fifth of the world's oil, making any disruption an immediate concern for fuel-importing countries such as Kenya. After falling below $71 a barrel last week amid optimism over peace talks, Brent crude has rebounded to about $76-$79 per barrel following the latest exchange of strikes.
Earlier during the conflict, prices had surged to as high as $120-$126 per barrel on fears of major supply disruptions. The renewed price rally means relief at the pump for Kenyan consumers is likely to remain elusive. In the latest June-July fuel review by the Energy and Petroleum Regulatory Authority (EPRA), Super Petrol is retailing at Sh214.03 per litre in Nairobi, Diesel at Sh222.86 and Kerosene at Sh191.38, keeping transport and production costs high across the economy.
According to the Central Bank of Kenya (CBK), the Middle East conflict has disrupted global supply chains, increased transportation costs and fueled inflation while slowing global economic growth.