Oil costs rose to about $100 a barrel this week as the war in the Middle East continued with Iran pledging to block ships travelling through the Strait of Hormuz, a key shipping channel in the region, in the face of attacks from the US and Israel.

Donn Foggo, the Regulatory Authority director of communication and stakeholder engagement, said the body is closely monitoring these market developments as part of its duty of overseeing Bermuda’s electricity and fuels sector.

He explained that the RA must ensure that any impact from international markets are assessed “through a regulatory process rooted in data and analytics, consistent with our statutory mandate”.

Mr Foggo added that the RA must balance the interest of Bermuda residents with the “continued stability and reliability of the island’s energy system”.

He concluded: “The RA will continue to apply its established fuels and electricity frameworks and oversight processes to ensure that all relevant considerations are appropriately evaluated.”

Jermaine Simons, Rubis sales manager, said the price hike’s impact at Bermuda petrol stations “would not necessarily be immediate and may be monitored by several factors”.

He explained: “Higher crude oil prices generally increase the cost of refined products such as gasoline and diesel, as refineries pay more for crude feedstock.

“However, pump prices in Bermuda do not move in direct response to daily market fluctuations, as local fuel prices are regulated and typically reviewed on a periodic basis rather than daily.”

Mr Simons highlighted that Bermuda imports fuels from the Gulf Coast, the Caribbean and the US Eastern Seaboard, so pricing is “influenced by refined product benchmarked prices in the US Gulf market”.

He said these benchmarks are typically assessed within a three-month period, which helps “smooth short-term volatility and reduce the impact of sudden price spikes”.

Mr Simons said the RA regulates the maximum price of fuel, so any cost adjustments would happen through “an established review process rather than immediate reaction to changes in global markets”.

Alcindor Bonamy, general manager at Sol Petroleum Bermuda, said that the war in Iran has yet to impact fuel prices locally, but that could change if the war continues.

Mr Bonamy said: “If in fact this continues, which we don’t know if it will, there’s a possibility that will have some impact in Bermuda.

“We are not immune to impacts from the global economy.”

Mr Bonamy added that even in uncertain circumstances, Sol works to ensure that the island has a regular supply of fuel into Bermuda and will work with the RA and other stakeholders to face whatever challenges arise.

Joe Simas, vice-president of marine operations at Meyer Shipping, said: “Fuel prices have not yet affected local trade.

“However, we expect that to change soon with higher fuel costs being projected to come in effect soon.”

Alexa Lightbourne, the Minister of Home Affairs, said this week that the ministry will work with the RA and industry stakeholders to “safeguard affordability and keep the public informed as the situation develops.”

The Royal Gazette also reached out to Belco, Bermuda Container Line, BGA, BermudAir and the Bermuda Tourism Authority for comment, but did not receive a response by press time.