"According to the International Air Transport Association (IATA), the global average price of jet fuel jumped 58.4% week-on-week to $157.41 a barrel, far above the $88 average the industry had expected for 2026."
"Part of the surge is being driven by disruption to oil flows through the Strait of Hormuz, one of the world's most critical energy chokepoints that sits between Oman and Iran. As IATA recently noted in a market update, the waterway-which typically carries around 20% of global oil supply-has become severely constrained as tanker traffic has collapsed."
"IATA estimates 25% to 30% of the continent's jet fuel originates from the Gulf, with the association warning that tightening availability will 'push jet fuel cracks and product premiums sharply higher amid mounting concerns over physical shortages.'"
Brent crude oil surged to $119.50 per barrel due to Iran-related conflict, with jet fuel prices experiencing even sharper increases. The global average jet fuel price jumped 58.4% week-on-week to $157.41 per barrel, far exceeding industry expectations of $88 for 2026. Disruption to oil flows through the Strait of Hormuz, a critical energy chokepoint carrying 20% of global oil supply, is a primary driver. Europe faces particular pressure as 25-30% of its jet fuel originates from the Gulf. Airlines including Qantas, SAS, Air New Zealand, and Hong Kong Airlines have already announced fare increases and fuel surcharges. Since jet fuel represents approximately 25% of airline operating costs, sharp price increases rapidly erode industry margins.
#aviation-fuel-costs #oil-price-surge #airline-ticket-prices #strait-of-hormuz-disruption #iran-conflict-impact
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