Global Jet Fuel Supplies Hit by Disruption in Hormuz Shipping Lanes

The International Air Transport Association (IATA) says the ongoing conflict in the Middle East has significantly disrupted global jet fuel supply chains, with the near‑closure of the Strait of Hormuz sharply reducing the flow of crude and refined products.

In its Chart of the Week published on 6 March 2026, IATA outlines how the sudden collapse in tanker traffic through the Strait has exposed structural vulnerabilities in the aviation fuel market, particularly for regions heavily dependent on Gulf supplies.

According to the analysis, tanker movements through the Strait have fallen by an estimated 70 to 80 percent since the conflict escalated. The Strait normally carries around 20 percent of the world’s oil supply, making it one of the most critical energy corridors globally. With traffic now severely restricted, refiners in Europe and Asia are facing tighter supplies and rising costs, creating ripple effects across the aviation sector.

Europe is among the most affected regions. The continent typically sources between a quarter and a third of its jet fuel from the Persian Gulf, and commercial inventories cover only slightly more than one month of demand. IATA notes that this limited buffer leaves European airlines exposed to prolonged supply disruptions, especially as alternative suppliers face their own constraints. Much of the crude that continues to move is being redirected to Asian markets, reducing the availability of refined jet fuel for export.

The closure of the Strait has also forced tankers to reroute around the Cape of Good Hope, adding weeks to delivery times and significantly increasing transport costs. War‑risk insurance premiums have surged, further raising the cost of jet fuel and adding pressure on airlines already dealing with operational challenges linked to the conflict. IATA’s analysis shows that jet fuel cracks and product premiums have risen sharply, reflecting concerns about tighter supply conditions.

The association highlights that aviation is particularly exposed because airlines have limited flexibility to diversify fuel sources and no immediate alternative to jet fuel. The situation, IATA notes, underscores the importance of strengthening supply chain resilience, diversifying sourcing strategies, and accelerating the development of sustainable aviation fuel to reduce long‑term dependence on vulnerable crude routes.

IATA concludes that the disruption in the Strait of Hormuz is a clear demonstration of how geopolitical shocks can rapidly reshape global fuel markets. With crude flows reduced, delivery routes extended, and costs rising, airlines face a period of heightened uncertainty as the industry adapts to a more constrained and volatile supply environment.