Global Energy and Oil Markets

The head of the International Energy Agency, Fatih Birol, warned in an exclusive interview that Europe now has "maybe six weeks" of jet fuel left, framing the fallout from the Iran war and the effective closure of the Strait of Hormuz as the global economy's "largest energy crisis." Analysts estimate the strait accounts for about 40% of Europe's jet fuel imports and, with no jet fuel transiting since the conflict began, inventories have plunged: some European countries are down to under 20 days of coverage and the IEA cautions that falling below about 23 days could produce physical shortages at airports and force cancellations. Jet fuel is the single largest cost for airlines — roughly 30% of expenses — and prices have roughly doubled since the conflict began; carriers have already responded by embedding higher fuel costs into fares, raising ancillary fees and trimming schedules.