Saga, a prominent provider of holidays and insurance for over-50s, has cautioned that fuel shortages linked to the conflict in Iran could potentially disrupt its cruise operations. The company addressed these concerns in its annual report released on Monday, highlighting its direct vulnerability to marine fuel supply challenges amid escalating global oil tensions.

The outbreak of hostilities in Iran, coupled with the closure of the strategically vital Strait of Hormuz—a critical passage for around 20 percent of the world’s oil and gas shipments—has intensified worries over oil availability. Following recent U.S. military strikes on Iran, oil prices surged above $100 a barrel, raising fears that a fragile ceasefire could unravel. Analysts have also noted that emergency oil reserves are nearing critically low levels.

Saga noted that, in addition to its direct exposure to marine fuel disruptions, it faces indirect effects from rising jet fuel costs due to its airline partnerships. In response to market volatility, the company said it has fully hedged against commodity price increases for the upcoming year.

To mitigate fuel consumption, Saga has implemented measures such as allowing its vessels to turn off engines while docked and conducting biofuel trials across its ocean fleet. The shipping industry at large is confronting additional risks from the circulation of adulterated fuel supplies, with incidents of tanker breakdowns reportedly rising in recent weeks. Experts attribute some of these mechanical failures to contaminated marine fuel mixed with impure shale oil.

Despite these challenges, a Saga spokesperson conveyed confidence in the company’s preparedness and resilience, stating that the ongoing conflict is not expected to have a material impact on its performance throughout the current year.