finance
IEA Predicts Europe Could Face Jet Fuel Shortages in Six Weeks Due to Strait of Hormuz Closure
Europe’s jet fuel supplies are projected to last about six weeks due to the closure of the Strait of Hormuz amid the Iran war. The International Energy Agency reports significant damage to regional energy infrastructure and rising fuel prices, with potential flight cancellations and economic challenges for weaker economies.
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Europe is facing a potential shortage of jet fuel within approximately six weeks as the Strait of Hormuz remains effectively closed due to the ongoing Iran war. The head of the International Energy Agency (IEA) stated in a Thursday interview that Europe has "maybe six weeks or so" of jet fuel supplies left.
The IEA also indicated that several European countries may start experiencing jet fuel shortages in the coming six weeks.
The closure of the Strait of Hormuz, a critical maritime chokepoint through which nearly 20% of the world’s traded oil passes in peacetime, has disrupted oil, gas, and other energy supplies. The closure has been in response to military strikes and has implemented a "toll booth" system requiring some ships to pay fees for passage.
More than 110 oil-laden tankers and over 15 liquefied natural gas carriers are currently waiting in the Persian Gulf. The conflict has damaged over 80 key energy assets in the region, with more than one third severely or very severely affected. The head of the IEA stated that restoring pre-war production levels could take up to two years, even if a peace deal is reached.
The disruption has driven jet fuel prices in Europe sharply higher. The head of the IEA noted that if the Strait of Hormuz remains closed until the end of May, many countries, especially those with weaker economies, will face significant challenges including high inflation, slow growth, or recession.
He also warned that flight cancellations could occur soon due to jet fuel shortages, citing the possibility that some flights from city A to city B might be canceled if supplies are not restored. The International Energy Agency provides energy guidance to member nations and continues to monitor the evolving crisis.
