EU weighs more US jet fuel, cleaner aviation amid Iran war economic strains

Key Points:

• The European Union plans to issue guidance to airlines on managing airport slots, passenger rights, and public service obligations amid potential jet fuel shortages caused by the Iran war.
• Currently, there are no jet fuel shortages, but a prolonged Strait of Hormuz blockade could severely impact Europe and the global economy, as the EU imports 30-40% of its jet fuel, with about half from the Middle East.
• The European Commission will introduce a "fuel observatory" to monitor jet fuel supplies and emphasize transparent use of emergency stocks to prevent market distortions if shortages occur.
• The crisis is seen as an opportunity to accelerate development of sustainable aviation fuel (SAF) and synthetic fuels to reduce dependency on Middle Eastern imports, despite current SAF production being insufficient and costly.
• The EU will clarify anti-tankering rules and explore alternative fuel imports, such as US Jet A fuel, while maintaining that high fuel prices do not justify waiving passenger compensation for delays or cancellations.