As the conflict between the US and Iran rumbles on into its seventh week without a lasting peace settlement, various parties have begun warning of a jet fuel shortage across Europe unless a deal can be reached.
As the aviation industry heads into its busy summer season, the EU is proposing a new jet fuel sharing mechanism that may mitigate the impact of jet fuel shortages and keep planes in the air, should the worst-case scenario occur and shortages begin to bite.
Jet fuel shortages risk European flights as Strait of Hormuz disruption continues
Since the end of February this year, when the US declared war on Iran, the worldwide supply of oil has been impacted by the Iranian blockade of the Strait of Hormuz, the narrow waterway off Iran’s north coast that sees around 20% of the world’s oil pass through it on the way to refineries worldwide.
Europe imports around 30% of its jet fuel requirements, with the remainder produced locally. Normally, the majority of these imports come via the Strait of Hormuz, mainly from Kuwait, Saudi Arabia, Qatar, and the United Arab Emirates.
With the Strait still effectively closed, various authorities are warning that unless the blockage is lifted and shipping can start flowing fleetly once more, these oil shortages could shortly have an impact on the global availability of jet fuel.
The European Commission is stating that without a long-lasting resolution to the dispute, the tipping point for fuel shortages could come as early as mid to late June, as stocks dry up and tanks remain un-replenished by fresh supplies from the Gulf region.
Last week, the International Energy Agency (IEA) warned there could soon be flight cancellations if supplies remained blocked.
The head of the IEA, Fatih Birol, told reporters that Europe has “maybe six weeks of jet fuel left,” and that while supplies from other sources, such as Nigeria or the US, could alleviate the situation to a degree, the quantities involved are unlikely to match those that are no longer being supplied by the Gulf states.
