The jet fuel supply crisis Strait of Hormuz remains a major concern for global aviation despite signs of de-escalation in the Middle East. The head of International Air Transport Association warned on Wednesday that even if Iran reopens the critical oil route, airlines may face months of disruption due to damaged refining capacity.
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Jet Fuel Supply Crisis Strait of Hormuz to Persist Despite Ceasefire
Willie Walsh, Director General of IATA, said recovery will not happen immediately. He explained that refineries across the Middle East have suffered disruptions, which directly affect jet fuel production.
According to Willie Walsh, supply chains need time to stabilise. He stressed that reopening the Strait of Hormuz alone will not solve the crisis.
He said global supply depends heavily on Middle Eastern refining hubs. Therefore, restoring full capacity could take several months.
Oil Prices Drop but Jet Fuel Costs Stay High
Oil prices fell below $100 per barrel after Donald Trump announced a two-week ceasefire agreement with Iran. The deal includes reopening the Strait of Hormuz, which carries nearly 20 percent of global oil trade.
However, analysts warn that lower crude prices will not immediately reduce jet fuel costs. Refinery disruptions continue to limit supply.
Walsh noted that while crude oil availability may improve, jet fuel will remain expensive in the short term. He linked this gap to refining bottlenecks rather than crude shortages.
Airlines Struggle as Jet Fuel Supply Crisis Intensifies
Airlines across Asia have already started adjusting operations. Many carriers are cutting flights, increasing fuel loads, and adding refuelling stops to manage shortages.
The jet fuel supply crisis Strait of Hormuz has placed additional pressure on an industry already dealing with rising costs. Jet fuel prices have doubled in recent months, hitting airline profitability.
The impact remains severe in import-dependent countries like Pakistan, Vietnam, and Myanmar. These markets rely heavily on external fuel supplies, making them vulnerable to global disruptions.
Export Restrictions Worsen Regional Supply Shortage
The situation worsened after major suppliers restricted exports. China and Thailand halted jet fuel exports, while South Korea capped shipments at previous levels.
These measures tightened supply across Asia. As a result, smaller economies faced the harshest consequences.
Walsh expressed cautious optimism. He said fuel exports could resume once crude oil flows stabilise. Countries like China and South Korea may re-enter the market under improved conditions.
Refinery Margins May Drive Future Supply Recovery
Experts believe refinery economics will play a key role in recovery. Elevated crack spreads, which measure refinery margins, may encourage producers to increase jet fuel output.
Walsh explained that available refining capacity exists. However, it requires stable crude supply and time to ramp up production.
The jet fuel supply crisis Strait of Hormuz highlights the deep link between geopolitical tensions and global energy markets. Even with a ceasefire in place, the aviation sector must prepare for continued cost pressures in the coming months.