The heightened instability in the Middle East, a region critical to global fuel production, has left some local suppliers feeling wary about what could come next.

The geopolitical tension affects oil prices, which broadly affects the economy.

Joseph Marable, the owner of the Crawl Hill Esso Tiger Market in Hamilton Parish, has been closely monitoring media reports about the Iran and Israel confrontation in recent weeks.

Iran is the third largest member of the Organisation of Petroleum Exporting Countries. Last year it produced an average of 3.3 million barrels of oil per day.

“Anything that could impact prices at the pump concerns me,” Mr Marable said.

The cost of fuel at service stations in Bermuda is already higher than in the United States.

“In a convenience retail business like ours, fuel sales drive food sales,” he said. “People pull in for some gas then decide they need water and chips. There is a relationship between the two.”

He explained that all petrol stations in Bermuda had to follow the price structure established by the Bermuda Regulatory Authority. The RA sets the price of local fuel on the 16th of every month.

“We can sell it for below that price but not above,” he said. “It is always a bit of a gamble. If a gas station owner buys fuel a few days before the 16th and the price is put up, they can benefit, a little bit. If the RA puts the price down, we can lose out.”

During the 16 years he has been running his service station, he has not seen too many big increases in the price of fuel.

“The RA make efforts to take our overall costs and make some adjustments,” he said. “I am happy about that.”

Brandon Swainson, the manager of the St George’s Esso Service Station, was unconcerned by fluctuations in local gas prices.

“If prices skyrocket or plummet there is not much I can do,” he said. “On a more general level, I am concerned about what is going on in the Middle East.”

Reginald Raynor Sr, the owner of Raynor’s Gas Station in Warwick, was taking a religious view of the geopolitical crisis.

“I depend on the Lord,” he said. “I pray on the issues that we have to deal with. We have to truly link arms with one another and pray.”

Alcindor Bonamy, the general manager of Sol Petroleum Bermuda, was also watching the situation but expected it to have little impact on petrol prices in Bermuda.

His firm provides gasoline to Esso service stations on the island.

Mr Bonamy said: “We don’t see any immediate impact on daily market shares. At this time, there is no immediate disruption to Bermuda’s fuel supply.”

He agreed that while Bermuda imported its fuels and was therefore sensitive to international price fluctuations, local prices were regulated by the RA.

“Our team is in constant communication with key stakeholders and the RA,” he said. “We understand that global events could raise concerns with consumers. We remain committed to our customers.”

A spokesman for the RA told The Royal Gazette his organisation was guided by data, regulatory best practices and a legislative framework.

“While we remain attuned to global developments that may affect local energy markets, the RA refrains from public speculation in the absence of concrete evidence or economic modelling,” he said.

“We remain committed to delivering fair, transparent, and economically sound regulation to ensure Bermuda’s long-term resilience and sectoral security.”

A tentative ceasefire between Israel and Iran was still in place a day after US president Donald Trump announced a truce to almost two weeks of fighting, following strikes on Tehran’s nuclear and military bases.

Earlier fears that the conflict would send gas prices skyrocketing around the globe have diminished.

According to a Reuters article published yesterday, Brent crude prices rose from below $70 a barrel on June 12, the day before Israel’s initial attack, to $81.40 on Monday, following American bombing of Iranian nuclear facilities.

Mr Trump’s ceasefire agreement, however, brought petrol prices down again, to $75.51 per barrel yesterday.