Airlines have started raising costs and cutting routes as the fuel crisis, spurred by the Iran war, has increased costs. The risk of last-minute cancellations and disruptions before the summer holiday season is also rising.
The jet fuel squeeze is being driven by disruption in one of the world’s most critical energy chokepoints. The Strait of Hormuz has strangled fuel transport globally amid the US-Israeli war on Iran, according to a report by RT. Around a fifth of global oil supply passes through the narrow route linking the Persian Gulf to world markets, making it vital to energy flows to Europe and Asia, according to the International Energy Agency.
Hegseth: Hormuz Blockade Stays “As Long As It Takes” – Ships Now Fair Game For Search & Seizure
The escalation of the conflict has sharply reduced tanker traffic through the strait, with shipments delayed or halted, triggering what IEA chief Fatih Birol even warned could become the worst energy crisis in history.
Jet fuel is scarce by design. Only a small amount, less than 10% of oil, is refined into jet fuel. That means that the supply cannot just easily increase when the economic law of supply and demand warrants it.
The EU does produce jet fuel in its own refineries, but not in sufficient volumes, which is why Europe’s aviation sector is particularly exposed to the situation in the Middle East. Around 75% of Europe’s jet fuel imports come from the region, mostly Kuwait, making supplies highly vulnerable to disruptions in Gulf shipping routes. -RT
Some analysts have warned that jet fuel is the least of humanity’s worries. If the Strait of Hormuz doesn’t resume normal operations soon, there will be a global food shortage, complete with ruling classes rationing food for civilians.
Global Food Shortages Will Hit In 6 To 9 Months As Little Will Go Through The Strait Of Hormuz Now
Gasoline prices have skyrocketed as the war continues, and they do not appear to be going down any time soon. This is bad news for a country already living paycheck to paycheck and fighting inflation with limited resources.
The ceasefire has done little to nothing to cull the rising costs of fuel, as the U.S. now has the Strait of Hormuz blockaded, in an attempt to force Iran to make a deal.
Read the full article here