International Energy Agency chief Fatih Birol cautioned that a potential shortage of jet fuel in Europe, exacerbated by the closure of the Strait of Hormuz, might lead to flight disruptions. Birol highlighted that Europe could run out of jet fuel in about six weeks, potentially resulting in flight cancellations if supplies remain blocked. The IEA’s recent report indicated that Europe would face a critical juncture in June if it failed to replace at least half of its jet fuel imports from the Middle East.
The IEA report emphasized that the Gulf region’s exports were a primary source of jet fuel for the global market, affecting refining operations in countries like Korea, India, and China. The closure of the Strait of Hormuz, a vital passage for jet fuel transport, has been ongoing for over six weeks due to geopolitical tensions, leading to price hikes and concerns of fuel shortages. Birol expressed deep concern over the impact of this crisis on the global economy, foreseeing adverse effects on economic growth and inflation worldwide.
Birol underscored that the repercussions of the jet fuel shortage would disproportionately affect developing nations initially, with Asia, Africa, and Latin America bearing the brunt before the crisis extends to Europe and the Americas. He also raised alarms about Iran’s reported imposition of a “toll booth” system for ships passing through the Strait of Hormuz, warning of broader implications if such practices become widespread.
