The Strait of Hormuz might be 10,000 kilometres from Yarmouth Harbour, but it is certainly starting to negatively impact this year’s fishing season in Southwest Nova Scotia and potentially the other 2026 commercial fisheries across the region.
The ongoing United States/Israel/Iran war continues to send shockwaves through global energy markets and one of the clearest repercussions for the commercial fishing industry is the sharp rise in diesel fuel prices.
For commercial fishermen—who rely heavily on diesel to power their vessels—this surge is translating directly into higher, immediate operating costs, reduced profits and growing uncertainty about the future of the 2026 season.
On December 8, 2025, the average cost of diesel fuel in Nova Scotia was $1.79/litre. On March 16, that price had jumped to $2.23/litre, with no end in sight of how it might it actually rise.
For commercial fishermen, these fuel price increases are especially damaging. Fishing vessels typically run on diesel engines and consume large volumes of fuel during long trips at sea. However, unlike other industries, fishermen often cannot easily pass these higher costs on to consumers due to fluctuating seafood prices and competitive markets. The increasing fuel costs are cutting into already tight margins for many fishermen’s profit margins.
Rising diesel prices are already affecting day-to-day decisions. Some crews are shortening trips, reducing fishing effort, or delaying voyages altogether in an attempt to conserve fuel.
At the heart of the issue is the disruption of global oil supplies caused by the U.S./Israeli governments’ ill-advised decision to attack the repressive regime in Iran.
The conflict, which escalated in late February 2026, has severely impacted the Strait of Hormuz, one of the world’s most critical transit routes. Roughly 20 per cent of global oil supply normally passes through this narrow waterway, but attacks on shipping and military tensions have caused tanker traffic to collapse and shipments to stall. And now both sides of the conflict are targeting key crude oil refining infrastructure in the Middle East region. As a result, crude oil prices have surged past $100 per barrel, climbing roughly 50 per cent since the start of the conflict.
This spike in crude prices feeds directly into the cost of refined fuels like diesel. Since diesel is produced from crude oil, any disruption upstream quickly ripples through to end users.
Diesel prices have risen even faster than gasoline in many regions. In the United States, for example, diesel has climbed above $5/gallon, increasing by more than a dollar in just weeks. Analysts note that diesel markets are particularly vulnerable because the type of crude needed to produce it is now in tighter supply, compounding the price surge.
Globally, the consequences could be severe for the seafood industry. Fishing is an energy-intensive industry and higher fuel costs could ripple through the entire seafood supply chain—from harvest to processing to transportation. This can ultimately lead to higher seafood prices for consumers and reduced availability of certain species.
Diesel is the backbone of global transportation and logistics, powering trucks, ships and heavy machinery. As prices rise, the cost of goods and services increases across the board, contributing to inflation. For commercial fishermen, this means not only higher fuel bills, but also increased costs for gear, maintenance and distribution.
There is also significant uncertainty about how long these conditions will last.
The longer the conflict continues, the greater the strain and uncertainty on global energy supplies. Some economists warn that even if hostilities ease, it could take time for supply chains to stabilize and for fuel prices to return to normal levels.
The Iran war has demonstrated once again how geopolitical conflicts can have immediate and far-reaching effects on everyday industries — even those 10,000 kilometres away. Remember what happened when Russia invaded Ukraine on February 24, 2022?
For those who make their living at sea, the rising cost of diesel is more than just an economic statistic, it is a direct threat to their livelihoods.
