(PetroTimes) In response to increasingly complex developments in the Middle East, PVNDB and NSRP have proactively enhanced coordination to update the situation and develop appropriate response plans to mitigate potential impacts on production and business operations, while ensuring national energy security.
The escalating geopolitical tensions in the Middle East, especially following February 28, 2026 - when the US and Israel launched a large-scale military airstrike operation against Iran, triggering a wider escalation across several countries in the region - have marked a significant escalation of tensions, directly affecting the global energy market. Global oil prices are experiencing sharp volatility, shipping costs are rising significantly, and the supply chain of petroleum raw materials and products is facing significant disruption risks, thereby placing considerable pressure on domestic supply and market stability.
In this context, the Strait of Hormuz – a strategic maritime chokepoint connecting the Persian Gulf to the Indian Ocean– remains a focal point of concern for the global energy market. This route carries approximately one-fifth of the world's crude oil consumption. Any potential blockade or disruption in this area could immediately trigger sharp increases in global oil prices, leading to cascading impacts across international oil, marine insurance, and logistics markets.
According to international energy market reports, immediately after the escalation of tensions, Brent crude oil prices recorded sharp spikesdue to concerns about supply disruptions, while major shipping companies adjusted routes and introduced conflict-risk surcharges. As a result, the domestic market is also experiencing certain impacts on market sentiment and input costs.
In light of this situation, on March 4, 2026, a delegation from the Nghi Son Refinery Products Distribution Branch (PVNDB), led by Mr. Nguyen Duyen Cuong - Branch Director, held an official meeting with Nghi Son Refinery and Petrochemical Company Limited (NSRP). The meeting aimed to exchange update the latest developments and discuss appropriate response strategies and solutions.
At the meeting, Mr. Kazutaka Yamato - General Director of NSRP, stated that the company is also being affected by the escalating tensions in the Middle East. In this context, the refinery is actively seeking and diversifying crude oil supply sources to maintain safe and stable operations.
NSRP will continue to regularly update PVNDB on the refinery's operational status. In the event of any potential impact on production and supply, NSRP will promptly report to the relevant authorities and agencies to coordinate the implementation of timely and effective response measures, thereby contributing to the assuarance of national energy security.
At the meeting, PVNDB provided updates on market information, consumption needs, and plans of key traders, thereby supporting NSRP in optimizing its production and distribution plan under fluctuating market conditions. Both Parties will further strengthen coordination mechanisms in product lifting and delivery arrangements to ensure a smooth and continuous supply of petroleum products.
PVNDB also noted that the Vietnam National Energy Corporation (Petrovietnam) is actively and urgently exploring solutionsto support the Refinery’s crude oil feedstocksupply amidst increasing challenging market conditions.
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| Scene from the working session between PVNDB and NSRP |
At the meeting, the two Parties also discussed and exchanged updates related to the implementation of the biofuel roadmap in compliance with goverment regulations.
In the context of a global energy market that remains highly volatile and unpredictable, the proactive and close coordination between PVNDB and NSRP not only contributes to ensuring a stable supply of petroleum products for the domestic market, but also underscores the role and responsibility of key enterprises in safeguarding national energy security and mitigating the impacts of global geopolitical volatility.