Iran’s threats to shipping in the Straits of Hormuz has caused a surge in prices at Italian pumps and checkouts and led the government of Georgia Meloni to do a U-turn on its coal-replacement policy. 

The impact of the Hormuz choke-off were felt almost immediately in Italy—21% of its energy supplies transit through the Straits—as diesel prices jumped sharply in early March, by around a quarter in little more than a week, according to one analysis of the Hormuz disruption and Italy’s exposure – with petrol not far behind.

For families dependent on their cars, and for the small hauliers who keep Italy’s logistics chain moving, the effect has been immediate: filling a tank now costs noticeably more than it did in February, even before the summer holiday traffic has begun.

The shock is already visible in inflation figures. Headline consumer prices, which had been drifting towards the comfort zone after the post‑Ukraine spike, have moved back up to roughly 1.7 per cent year‑on‑year, with economists warning that inflation is once again “an energy and food story” rather than a tale of booming demand.

Food is the second front in this new squeeze.........

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