EU eyes options as Iran conflict threatens jet fuel shortages

The blockade of the Strait of Hormuz is causing concern in Europe, which relies heavily on imported jet fuel.The European Union is mulling jet fuel imports from the United States and new minimum reserve quotas as it eyes options amid a supply crunch due to the Iran conflict.Despite mounting pressure on jet fuel supplies in the EU, there is no evidence of “actual shortages” of jet fuel currently, and widespread flight cancellations are not expected over the summer, Transport Commissioner Apostolos Tzitzikostas insisted on Tuesday.Recommended Stories list of 3 itemslist 1 of 3Oil prices surge amid mixed signals on US-Iran peace talkslist 2 of 3As Iran crisis drags on, fears of global food catastrophe growlist 3 of 3Strait of Hormuz: How a threat became a playbookend of listThe EU official’s bid to calm worries came amid the continued blockade of the Strait of Hormuz, which is normally the passage for one-fifth of the world’s oil and liquefied natural gas supplies, has raised concerns about supply across the globe.Last week, the head of the International Energy Agency, Fatih Birol, said that Europe has “maybe six weeks or so [of] jet fuel left”, warning of possible flight cancellations “soon” if oil supplies remain halted by the war.Tzitzikostas admitted that stocks were “under pressure” in parts of Europe, but said that the EU is following the situation closely, the market is responding to the pressure, and there were no signs of bottlenecks.He acknowledged that some carriers had cancelled flights, but asserted that it was on account of high fuel costs, not for lack of supply.Airlines will be provided with guidance on passenger rights and public service obligations in the event of jet fuel shortages, he said.The EU imports 30 to 40 percent of its jet fuel needs, with roughly half coming from the Middle East.“Europe maintains emergency stocks. These stocks can be and will be released only if necessary. At this stage, however, the market is managing the pressure, and there is no evidence of actual shortages,” Tzitzikostas said.