Europe may have only six weeks of jet fuel supplies left before shortages begin to disrupt air travel, according to the head of the International Energy Agency (IEA), as the prolonged US-Iran conflict continues to strain global energy markets. Fatih Birol, executive director of the IEA, warned that flight cancellations could begin within weeks if oil supplies from the Middle East are not restored. Also Read | US-Israel-Iran War News Updates: US Says 13 Ships Turned Around Due To Blockade “I can tell you soon we will hear the news that some of the flights from city A to city B might be cancelled as a result of lack of jet fuel,” Birol told the Associated Press. The US-Israel conflict with Iran, which began in late February, has caused major disruption across global oil and fuel markets. In response to the attacks, Iran has effectively shut the Strait of Hormuz, a critical route for oil exports from the Gulf region. Although the US and Iran agreed to a two-week ceasefire last week, efforts to negotiate a broader end to the conflict stalled over the weekend. Indirect talks, reportedly being brokered by Pakistan, are still underway. Brent crude prices remain more than 30% higher than pre-war levels, adding pressure on fuel markets and driving up petrol prices globally. So far, Europe has avoided outright shortages because fuel shipments that departed before the conflict escalated continued to arrive. However, those final cargoes have now reached Europe, raising fears that the region could soon face supply gaps. Birol said Europe had “maybe six weeks or so” of jet fuel left. His comments follow a warning from Airports Council International Europe, which wrote to European Union energy and transport commissioners last week saying the bloc was only three weeks away from shortages. Under normal circumstances, airports and airlines generally maintain around six weeks of fuel reserves. Also Read | US Says Won't Renew Sanctions Waiver On Iranian, Russian Oil However, industry officials say the prolonged conflict has forced companies to dip into emergency stockpiles, while alternative suppliers do not have the capacity to fully replace Gulf-origin fuel supplies. “In the past there was a group called Dire Straits,” Birol said. “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 the economic growth and inflation around the world.” Birol also warned that consumers are likely to face “higher petrol prices, higher gas prices, high electricity prices”, with some regions expected to suffer more than others. Several airlines have already cut flights that have become unprofitable due to surging fuel costs, especially those without fuel hedging arrangements in place. Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
Europe may have only six weeks of jet fuel supplies left before shortages begin to disrupt air travel, according to the head of the International Energy Agency (IEA), as the prolonged US-Iran conflict continues to strain global energy markets. Fatih Birol, executive director of t…
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A tanker identified as the Kaifan was struck by an unknown projectile northeast of Oman’s Limah in the Strait of Hormuz, according to a July 21 report from UK Maritime Trade Operations. No ships were observed transiting the strait that day. Attribution of the strike and links to prior incidents have not been confirmed by the vessel’s owner.
Goldman Sachs has projected Brent crude averaging $80 per barrel in the fourth quarter and $75 in the following year, conditional on reduced Middle East tensions, while noting upside risks from potential shipping disruptions in the Strait of Hormuz or Red Sea.
Brent prices rose above $91 per barrel amid recent U.S.-Iran exchanges and Houthi threats to Saudi shipments before edging lower on Tuesday. A senior Iranian official told Reuters that mediators had proposed a 10-day ceasefire to preserve an interim agreement.
Opening summary: Iran claims attacks on strait of Hormuz ships amid fresh US strikes Welcome to our live coverage of the latest developments in the Middle East crisis. Iran attacked a tanker in the strait of Hormuz early on Tuesday, forcing its crew to abandon the ship, as Yemen’s Iran-backed Houthis announced they were imposing an immediate maritime blockade of Saudi Arabia in the Red Sea after the two sides traded fire last week for the first time in years.
A Houthi official said the Bab al-Mandeb strait – at the southern end of the Red Sea, through which about 12% of the world’s trade usually passes – would be closed to the Saudis in response to the kingdom’s “unjust blockade on Yemenis for over 10 years”.
Saudi Arabia said it would take “all necessary measures to protect its vessels in accordance with international law”. A 10 consecutive night of US airstrikes has not compelled Tehran to loosen its grip on the strait of Hormuz, a vital route for global energy supplies.
But even as Iran’s president said the country had returned “full-scale war”, the Iranian interior minister travelled to Pakistan – a key mediator in the conflict – for talks. In key developments: The latest US strikes came hours after Donald Trump said Iran would pay “many times over” for killing US soldiers after multiple service members were killed in action over the weekend.
A tanker came under attack early Tuesday in the Hormuz strait off Oman, forcing the crew to abandon the vessel, the British military’s United Kingdom Maritime Trade Operations centre said. Iran’s Revolutionary Guards claimed the attack as well as two other attacks on ships in the waterway on Monday.
The US military’s Central Command said its latest airstrikes were to “degrade” Iran’s ability to attack commercial shipping in the strait and included hitting military command centres and missile and drone launch sites. Iranian media reported strikes in parts of the country including Bandar Abbas, Tabriz and Bushehr, home to the country’s only operational civilian nuclear power.
Iran’s launched attacks in response against Bahrain, Kuwait and Jordan, which all host US forces. Oil prices softened after hitting their highest levels in more than a month in the previous session. Brent crude futures eased 0.4% to $88.87 a barrel by 0052 GMT on Tuesday while US West Texas Intermediate crude for September delivery was steady at $82.
47 a barrel. Democrats have seized on the deaths of three US troops killed in Iranian strikes to urge Trump to urgently reverse his resumption of the war with Iran amid widespread anxiety over climbing casualties. The Lebanese army began taking charge of security in three southern villages, the US said, as a deal to secure an Israeli withdrawal from southern Lebanon and the disarmament of Hezbollah faced its first test on the ground.
US forces struck the tanker Settebello in the Gulf of Oman on June 10, killing three Indian crew members when munitions hit the engine room and adjacent areas. Maritime tracking data indicate the vessel had transported Iranian oil under US sanctions for several years and conducted offshore transfers prior to the strike.
The US military described the action as a precision operation, while reports note the ship was stationary at the time.