Disruptions in the Strait of Hormuz could trigger flight cancelations and higher energy costs, Fatih Birol has told the AP
Europe could run out of jet fuel within weeks if oil supplies continue to be disrupted by the Iran war, the head of the International Energy Agency (IEA) has said.
In an interview with the Associated Press on Thursday, IEA Executive Director Fatih Birol warned of far-reaching global consequences from what he described as “the largest energy crisis we have ever faced,” triggered by disruptions to oil, gas, and other critical supplies flowing through the Strait of Hormuz.
The US-Israeli bombing campaign prompted Iran to close the critical route, a conduit for roughly 20% of global oil, to “enemy ships,” triggering a breakdown in supply chains. US President Donald Trump declared a blockade of the strait on Sunday after failed talks with Tehran, a move that caused tankers to turn back and pushed oil prices back toward $100 a barrel.
Tankers carrying fuel are unable to reach European ports, while viable alternative routes remain limited, Birol said.
Europe had “maybe six weeks or so” of jet fuel left, according to the agency chief, and unless the Strait of Hormuz is reopened, “soon we will hear the news” of flights being cancelled due to shortages.
Birol likened the situation to a “dire strait,” warning that the longer disruptions persist, the worse the impact on growth and inflation worldwide. The fallout would mean “higher petrol prices, higher gas prices, high electricity prices,” he said.
Western Europe is widely seen as the biggest loser from the Hormuz blockade due to its heavy reliance on Middle Eastern oil after sanctioning Russian supplies.
Politico reported earlier this month that London’s Heathrow Airport has already seen cancellations linked to soaring jet fuel costs, while Scandinavian carrier SAS has reportedly scrapped about 1,000 flights. Smaller British regional airlines Skybus and Aurigny have also cut services as fuel prices surge roughly 120% year-on-year, and Air France has raised fares on long-haul routes.
Some EU countries have jet fuel reserves covering only eight to ten days, according to Corriere della Sera.
Moscow has signaled it is ready to plug any oil supply gap to offset shortages triggered by the Middle East conflict. Earlier this week, Indonesia secured an agreement to import Russian crude oil and liquefied petroleum gas, while the Philippines has taken its first Russian oil cargo in five years after declaring an energy emergency. Vietnam has signed new oil and gas cooperation deals with Moscow, and Thailand has also expressed interest in Russian supplies, underscoring Russia’s expanding role as a key supplier during the crisis.
Read the full article here