IEA Warns Europe Faces Jet Fuel Shortages Amid Supply Disruptions

The International Energy Agency (IEA) has warned that Europe may have approximately six weeks of jet fuel left as the airline industry faces significant challenges due to supply disruptions linked to the ongoing conflict in the Middle East. IEA Executive Director Fatih Birol stated that if oil supplies remain blocked, flight cancellations could occur soon.

Birol described the situation as a major energy crisis, emphasizing that the longer the disruptions continue, the more severe the implications will be for the global economy.

He noted that this crisis could lead to increased prices for petrol, gas, and electricity, affecting economic growth and inflation worldwide. Countries such as Japan, Korea, India, China, Pakistan, and Bangladesh are expected to experience the most significant impacts from the energy crisis, according to Birol.

He highlighted that poorer nations in Asia, Africa, and Latin America would likely suffer the most, with the effects eventually reaching Europe and the Americas.

Birol expressed concern over the toll booth system that Iran has implemented for some vessels passing through the Strait of Hormuz, suggesting that if this system becomes more permanent, it could set a troubling precedent for other critical waterways.

The IEA has previously indicated that the energy crisis is expected to worsen, particularly in April, when oil supply constraints are projected to double compared to March. Analysts have echoed these warnings, stressing that the situation for airlines largely depends on the flow of oil through the Strait of Hormuz.

In summary, the IEA's assessment underscores the urgency of addressing the supply disruptions to mitigate potential flight cancellations and broader economic repercussions across Europe and beyond.

“The longer it goes, the worse it will be for the economic growth and inflation around the world.”