Hong Kong to see ‘shocks, volatility’ in oil supply amid Middle East war, leader John Lee says

2026-03-17 - 05:36

Hong Kong Chief Executive John Lee has warned of “shocks and volatility” in the city’s oil supply amid the ongoing war in the Middle East, saying that the government is in talks with airlines and fuel suppliers. Chief Executive John Lee at a press conference. File photo: Kyle Lam/HKFP. Addressing reporters at a weekly press conference on Tuesday morning, Lee said he was “very concerned” about the impact of the Middle East conflict on oil prices and supply. “We will be seeing shocks and volatility,” he said. The government has been in talks with fuel suppliers to ensure a stable supply and remind them of their “social responsibility,” he said. Authorities have also met with local airlines, which announced fuel surcharge increases last week, Lee added. He warned that the Competition Commission would investigate any potential malpractice such as unfair competition and price manipulation. The chief executive made his comments as the conflict in the Middle East entered its third week. The war began after the US and Israel launched military strikes on Iran on February 28, killing the Islamic republic’s supreme leader, Ayatollah Ali Khamenei. The Dubai skyline with the landmark Burj Khalifa skyscraper (right) is pictured as a smoke plume rises from an ongoing fire near Dubai International Airport on March 16, 2026. Photo: AFP. Since then, Iran has retaliated with missile and drone attacks across the Middle East, striking Israel and Gulf Arab states that host US military bases, including Kuwait, Qatar, Bahrain, Jordan, Saudi Arabia, and the UAE. Iran is effectively blocking marine traffic in the Strait of Hormuz, the only maritime passage out of the Gulf that carries about one-fifth of the world’s oil, most of it bound for Asia. ‘Risks and opportunities’ Lee also sought to downplay the impact of the disruptions to oil supply, touting Hong Kong as a place of stability and security. A gas station in Happy Valley. File photo: Wikicommons. “The conflict in the Middle East [has] posed both risks and opportunities to Hong Kong,” he said on Tuesday. “Under One Country, Two Systems, Hong Kong will be very safe, which will be a big contrast to the situation now in [the] Middle East,” he told reporters. “Investors and businesses looking for diversification... [and] security of their investment will definitely look to Hong Kong.” Lee, who said he had visited four Gulf states since taking office in 2022, promised to continue the city’s relations with Middle Eastern countries, with which it has signed contracts and made investment deals in recent years to strengthen cooperation with the region.