Iran war: Jet fuel crisis deepens as Lufthansa cuts flights

Key Points:

• The Iran war has caused jet fuel shortages and soaring prices, leading airlines like Lufthansa and KLM to cancel thousands of flights between May and October to conserve fuel.
• Europe faces a critical jet fuel supply crisis, with the International Energy Agency warning of only six weeks' supply left, while EU officials consider fuel sharing and increased imports from the US to mitigate shortages.
• The closure of the Strait of Hormuz has disrupted global oil flows, heavily impacting Europe's aviation sector, which relies significantly on Middle Eastern kerosene imports for jet fuel.
• Sustainable aviation fuel (SAF) is seen as a long-term alternative, but current low supply and high costs limit its short-term viability as a substitute for conventional jet fuel.
• Airlines are expected to continue raising ticket prices due to high fuel costs, with further flight cancellations likely; the crisis highlights the aviation industry's vulnerability to geopolitical instability and supply shocks.