IEA Warns Europe Faces Jet Fuel Shortages Amid Iran Conflict

Europe may face jet fuel shortages within six weeks if oil supplies remain blocked due to the ongoing conflict in Iran, according to Fatih Birol, Executive Director of the International Energy Agency (IEA). In an interview on Thursday, Birol described the situation as "the largest energy crisis we have ever faced," stemming from disruptions in oil and gas supplies through the Strait of Hormuz.

Birol warned that prolonged blockages could lead to flight cancellations in Europe and higher prices for gasoline, gas, and electricity globally. He emphasized that developing countries in Asia, Africa, and Latin America would suffer the most, with economic pain felt unevenly across regions.

The IEA's monthly report highlighted Europe's heavy reliance on Middle Eastern jet fuel, which accounts for 75% of its net imports. The report outlined scenarios where, if Europe can only replace 50% of its usual Middle East supply, jet fuel stocks could fall below critical levels by June, leading to physical shortages at select airports.

Airports Council International Europe (ACI Europe) has also raised concerns, warning that if the Strait of Hormuz remains closed, European airports could face a "systemic shortage" of jet fuel within three weeks. This situation threatens to disrupt flight operations and significantly impact the European economy, especially with the peak summer travel season approaching.

Birol criticized Iran's implementation of a "toll booth" system for ships passing through the Strait of Hormuz, cautioning that establishing such a precedent could threaten the openness of other key maritime routes like the Malacca Strait. He urged for the unconditional flow of oil to avoid exacerbating global economic challenges and inflation.