New Delhi: International Energy Agency chief Fatih Birol on Thursday warned that air travel in Europe would be hit due to a shortage of jet fuel if the Strait of Hormuz remains closed, as stocks were already running low.
Europe may have “only maybe 6 weeks or so of jet fuel left”, and there could soon be flight cancellations if supplies remained blocked, Birol told the Associated Press.
Stocks would reach a tipping point in June if Europe was unable to replace at least half of its imports from the Middle East, IEA said in a report this week.
Birol described the unfolding situation as “the largest energy crisis we have ever faced”. “It’s a dire strait now, and it is going to have major implications for the global economy. And the longer it goes, the worse it will be for economic growth and inflation around the world,” he remarked.
The IEA, in its monthly oil market report, said exports from the Gulf region were the largest source of jet fuel for the global market. Refining companies in other major exporting countries, such as Korea, India and China, were themselves highly dependent on crude oil imports from the Middle East. As a result, the crisis has thrown a proverbial wrench into the inner workings of the aviation fuel markets, the report stated.
The Strait of Hormuz, a key route for jet fuel out of the Gulf, has been effectively closed by Iran for more than six weeks in response to US and Israeli attacks, which have resulted in a sharp increase in prices and raised fears of shortages.
Birol said that the burden would fall disproportionately on developing nations. Poorer countries in Asia, in Africa, and in Latin America would be hit first, then it would come to Europe and the Americas.
He also raised concerns over Iran’s reported “toll booth” mechanism for ships navigating the Strait of Hormuz, warning of broader implications if such practices become standard.
(IANS)
