The European Union's energy commissioner has issued a warning that a jet fuel shortage cannot be ruled out in the long term, as the ongoing conflict in Iran and disruptions in the Strait of Hormuz continue to impact global energy supplies.
No Immediate Threat, but Long-Term Concerns
Commissioner Dan Jørgensen stated on Wednesday that while there is no immediate threat to jet fuel supplies, the possibility of a longer-term shortage remains. He emphasized that the situation will depend on the progression of the Iran war, the stability of the Strait of Hormuz—through which approximately one-fifth of the world's oil typically passes—and the response of airlines. Some carriers, including the German owners of Lufthansa, have already canceled a significant number of flights due to rising fuel costs.
Fighting around the Strait of Hormuz has disrupted oil supplies, causing fuel prices to spike globally. Jørgensen noted that the EU's executive arm will initiate discussions with member states on how to address the situation, though no specific measures have been proposed yet.
Impact on Airlines and Fuel Costs
The Iran war has more than doubled jet fuel prices in some markets since late February. Airlines are particularly vulnerable because fuel expenses constitute a large portion of their operating costs. The commissioner highlighted that the EU has paid an additional 35 billion euros ($41 billion) for the same volume of fuel since the conflict began, underscoring the urgent need to transition away from fossil fuels.
“Really, this is not an energy crisis. This is a fossil fuel crisis,” Jørgensen said, pointing out that the EU has diversified its energy supply, improved energy efficiency, and expanded renewable energy since the 2022 Russian invasion of Ukraine.
EU's Energy Transition and Fossil Fuel Dependence
Michael Damianos, the energy minister of Cyprus—which currently holds the EU's rotating presidency—noted that fossil fuels like natural gas will remain part of the bloc's energy mix for the foreseeable future, even as the EU maintains its goal of a 90% reduction in greenhouse gas emissions by 2040. He added that natural gas from deposits discovered off Cyprus's southern coast could reach European markets by late 2027 or early 2028.
Jørgensen reaffirmed the EU's commitment to rapidly reducing greenhouse gas emissions, stating, “the climate crisis will not go away.” In the long term, the EU is in talks with Gulf nations to restore energy flows from the region once a negotiated peace with Iran is achieved. Last month, EU Council President Antonio Costa and EU Commission President Ursula von der Leyen expressed readiness to collaborate with Persian Gulf countries on new energy projects that would not be vulnerable to war or geopolitical strife.
