Ukraine prioritises military fuel supply amid oil crisis sparked by US-Israeli operation against Iran

Ukraine imported nearly 250,000 tonnes of fuel in March and has doubled its petrol reserves since 1 February — but the government’s energy minister said that the army, not the market, will be first in line if supplies tighten further under the global oil crisis
Prime Minister Denys Shmyhal chairs a meeting with banking sector representatives and government officials to discuss credit mechanisms for Ukrainian defense manufacturers
Prime Minister Denys Shmyhal convenes meeting on loan support for Ukrainian defense production, 29 October 2025. Photo: Ministry of Defense of Ukraine
Ukraine prioritises military fuel supply amid oil crisis sparked by US-Israeli operation against Iran

Ukraine's Minister of Energy Denys Shmyhal told parliament on Thursday that while the country faces fuel supply challenges stemming from the ongoing US-Israeli military operation against Iran and the resulting global oil crisis, the government has established a clear order of priorities — with the military first.

Speaking during the question hour at the Verkhovna Rada, as reported by a Suspilne correspondent, Shmyhal confirmed that current diesel and aviation fuel reserves for the armed forces are sufficient. "Purchases are ongoing. Negotiations with partners on additional procurement have been launched. The army will be supplied 100%," he said.

Ukraine imports approximately 85% of its fuel, a structural dependency that has sharpened under the current oil market disruptions. Despite this exposure, Shmyhal described the overall resource availability as manageable. "Right now the situation with resource availability is under control. The government is in constant contact with retail networks. We are helping wherever we can," he told lawmakers.

The second priority on the government's list is the spring planting season. Total demand for the campaign stands at 300,000 tonnes of diesel, but Shmyhal noted that the majority of agricultural producers have already purchased reserves or pre-contracted volumes — enough, he said, for several weeks. "The sowing campaign has begun and is currently proceeding on schedule," he added.

Retail and business fuel supply rounds out the government's three-tier framework. Shmyhal acknowledged disruptions at the start of March: "there were certain problems" with contract fulfilment. Since then, he reported, the situation has stabilised. According to the minister, Ukraine imported nearly 250,000 tonnes of petrol, diesel, and liquefied gas in March alone. Current strategic reserves stand at approximately 100,000 tonnes each of petrol and diesel — compared to 64,000 tonnes of petrol and 83,000 tonnes of diesel as of February 1 this year.

The bulk of fuel shipments are arriving from Poland, Lithuania, Romania, and Greece, with supply chains spanning more than ten countries in total.

The government announced its response measures on March 6, when Prime Minister Yuliia Svyrydenko stated that the Cabinet of Ministers was introducing a package of stabilisation measures for the domestic fuel market. Among them: state company Ukrnafta will sell fuel at a minimum commercial markup, establishing a reference price benchmark.

Background: The Iran conflict and its oil market fallout

The fuel supply pressure Ukraine is now navigating traces directly to events that began on February 28, when Israel struck the Iranian capital Tehran. US President Donald Trump subsequently announced that American forces had launched what he called a "major combat operation" against Iran, citing the Iranian regime's alleged "financing and training" of armed groups in Syria, Lebanon, Iraq, and Hamas in Palestine. Trump stated the operation's objectives include "destroying Iran's missile industry and naval fleet" and "ensuring the world cannot be destabilised."

Iran's Islamic Revolutionary Guard Corps (IRGC) said it launched missiles and drones toward Israel and struck American military bases in Qatar, Saudi Arabia, and the United Arab Emirates.

On March 8, Iran's Assembly of Experts elected Mojtaba Khamenei — son of the late Supreme Leader Ali Khamenei, whose death Trump confirmed on February 28 and Iranian state news agency IRNA subsequently verified — as the Islamic Republic's third Supreme Leader. Trump declined to comment on the appointment, saying only: "We'll see what happens."

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