Europe has only six weeks of jet fuel supply remaining before shortages hit, according to Fatih Birol, executive director of the International Energy Agency (IEA). He warned that flight cancellations would occur 'soon' if oil supplies from the Middle East are not restored in the coming weeks, as the Iran war disrupts global energy markets.
The warning comes as the IMF chief Kristalina Georgieva described the conflict as a 'large shock' to the world economy, with 20% of oil and gas stuck in the Strait of Hormuz. She stated that 'everyone will feel the impact', but low-income countries are the most vulnerable. Georgieva also urged governments to avoid overly generous energy subsidies and instead promote energy-saving measures such as working from home.
In the UK, the budget airline easyJet has already reported a £25 million increase in fuel costs over the past month due to the Iran war, warning of a hit to profits. Meanwhile, Chancellor Rachel Reeves announced expanded support for the most energy-intensive UK businesses facing soaring bills. UK GDP grew by a stronger-than-expected 0.5% in February, before the conflict escalated.
Saudi finance minister Mohammed Al-Jadaan highlighted that actual oil costs far exceed screen prices, with insurance and shipping rates pushing effective prices to $120–$160 per barrel, despite Brent crude futures trading around $99.50. French central bank chief François Villeroy de Galhau described the situation as 'unpredictable and even unknown'.
