Iran War Drives 30% Oil Price Jump, Amazon Adds 3.5% Fee Ahead of Prime Day
AMZN•Iran war has shuttered the Strait of Hormuz, cutting off 14 million barrels per day and driving crude oil costs up over 30%, raising Amazon’s freight and fuel costs. The company added a 3.5% surcharge on third-party fulfillment fees ahead of Prime Day, scheduled June 23–26, to recover logistics expenses.
1. Iran War Disrupts Strait of Hormuz
The conflict in Iran has largely shuttered the Strait of Hormuz, removing roughly 14 million barrels per day from the market and driving crude prices up more than 30%. Although just 2–3% of global consumer goods shipping passes through the route, rerouted voyages and rising fuel costs have significantly inflated freight rates.
2. Logistics Surcharge Implemented
In early April, Amazon introduced a 3.5% fuel and logistics surcharge on third-party seller fulfillment fees to partially recover these higher expenses. The temporary charge remains in effect as the company gears up for one of its busiest periods of the year.
3. Implications for Prime Day
Prime Day runs June 23–26, an earlier shift from its typical July date, and serves as a bellwether for retail. Elevated logistics costs threaten to squeeze Amazon’s margins or force higher prices, complicating efforts to deliver deep discounts amid record-low consumer sentiment.
