Andorra Fuel Chief Downplays Oil Price Spike from Israel-US Iran Strike

David Porqueres, president of the Andorran Fuel Importers and Distributors Association (Asidca), has described the recent jump in international oil prices following the joint Israel-US attack on Iran as a moderate increase with limited short-term effects in Andorra. Oil rose from $72 to $78 per barrel—a $6 gain—after the incident, though some reports now place it above $80. Porqueres called this a typical market response to Middle East tensions, noting it follows a steady climb from $62 to $72 over the past month amid rising conflict risks. The level stays far below the $140 peak seen during the Ukraine war.

Distributors have faced higher acquisition costs for the last two days, with sharp rises between Friday and Tuesday. "It's a raw material, and we buy at international spot prices," Porqueres said. Stations have so far absorbed the increases but expect to pass them on gradually to consumers this week, in smaller increments than in Spain, where some outlets raised prices by over 10 cents at once. "Andorra has always been more prudent with both increases and decreases," he added, forecasting moderate adjustments without specifying figures due to uncertainty over the conflict's path. The sector remains in "wait and see" mode, managing day by day amid familiar disruptions like the Ukraine war and pandemic.

Economists warn of broader impacts if tensions persist. Antoni Bisbal, president of the College of Economists, said the war could drive significant effects, especially if oil stays elevated, potentially nearing Ukraine-era levels and fueling inflation through higher logistics and energy costs. He predicted noticeable diesel price rises in about 15 days should the conflict continue. Sandra Estebe, from MoraBanc's discretionary portfolio management, noted markets anticipate a four- to five-week duration, with limited fallout if the Strait of Hormuz reopens; prolonged fighting could hit harder. OPEC's production hike may help stabilize prices short-term.

Indirect effects could touch Andorran tourism if living costs climb, possibly curbing visitor spending or stays, Estebe said. Separately, US President Donald Trump's threat to cut trade ties with Spain over denied base access for the Iran operation would have negligible impact on Andorra, experts said, mainly risking Spanish agro-food exports like oil and wine. Bisbal deemed it "insubstantial" for Spain and irrelevant locally, doubting feasibility against an EU member.