Hormuz Closure Sparks Global Jet Fuel Shortage

The global aviation industry is facing severe jet fuel shortages due to the ongoing closure of the Strait of Hormuz. The key trade corridor, connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea, has been closed for several months, affecting roughly 20% of the world's oil supply when fully operational.

European airlines have been hit particularly hard, with some announcing they are at risk of running out of jet fuel. The UK, France, and Germany rely heavily on Middle Eastern imports, leaving them vulnerable to disruptions in global energy trade.

The UK, France, and Germany are extremely dependent on the Middle East for their fuel supplies. Before the war, Europe relied on the Middle East for roughly half of its jet fuel imports. Iran has allowed limited fuel supplies through the Strait of Hormuz, but it is uncertain when normal trade will resume due to the ongoing conflict.

The International Energy Agency (IEA) forecasted a jet fuel supply deficit across Europe of almost 600,000 bpd in the third quarter of the year, compared to surpluses of around 116,000 bpd in the United States and 425,000 bpd in Asia-Pacific. EU Energy Commissioner Dan Jorgensen said that the region could face jet fuel shortages near the end of the summer season but that Brussels plans to coordinate releases of national reserves as required.

Several European countries have turned to alternative suppliers to fill the gap. The U.S., Nigeria, Canada, India, and South Korea have all stepped in to provide Europe with jet fuel. In Italy, refiners boosted jet fuel production by around 10% during the first four months of the year, helping to meet national demand.