EU eyes options as Iran conflict threatens jet fuel shortages

Lead

The European Union is weighing jet fuel imports from the United States and new minimum reserve quotas as it confronts a jet fuel supply crunch stemming from the conflict with Iran, according to Al Jazeera. The continued blockade of the Strait of Hormuz, a passage normally carrying about one-fifth of the world's oil, has raised concerns across Europe, which imports 30 to 40 percent of its jet fuel needs, with roughly half coming from the Middle East.

Despite the pressure, Transport Commissioner Apostolos Tzitzikostas insisted on Tuesday that there is no evidence of "actual shortages" of jet fuel currently and that widespread flight cancellations are not expected over the summer. However, the head of the International Energy Agency only last week warned that Europe has "maybe six weeks or so [of] jet fuel left" if oil supplies remain halted by the war.

Coverage Comparison

Al Jazeera focused on the EU's immediate options, emphasizing that the market is responding to pressure and that no bottlenecks have yet materialized. Tzitzikostas acknowledged that stocks were "under pressure" in parts of Europe but said the EU is following the situation closely, and the market is managing the pressure. He also stated that some carriers had canceled flights due to high fuel costs, not for lack of supply.

The Jerusalem Post, which carried an April 21 Reuters report, struck a more alarming tone, quoting EU Energy Commissioner Dan Jorgensen as saying that "the coming summer will be difficult for Europe due to fuel shortages caused by the war in Iran and the closure of the Strait of Hormuz — even in the best-case scenario." The publication highlighted that the EU is preparing measures to curb the impact, with Jorgensen telling reporters in Madrid, "If needed we may redistribute and share jet fuel resources we have." It also reported on the IEA head's warning of the worst energy crisis ever.

TASS — English provided several angles, including a report on the disruption of civilian aviation fuel through the Central Europe Pipeline System (CEPS) due to military operations, a European Commission official's explanation of the difficulties of data collection in unregulated oil markets, and an analysis suggesting the Ukrainian air force could face jet fuel shortages for F-16 and Mirage fighters as a result of the Middle East conflict.

Key Claims

• Military use of NATO pipeline: TASS reported, citing a trading company CEO, that supplies of aviation fuel for civilian use through the Central Europe Pipeline System (CEPS) have been disrupted due to military operations. In March and April, additional volumes of military aviation fuel were injected into the system in Rotterdam, leading to a reduction in civilian jet fuel supplies, including to Frankfurt Airport. The system, created the Cold War, still transports around 225,000 barrels per day through a network spanning more than 5,000 km.
• EU data and coordination: TASS quoted European Commission spokesperson Anna-Kaisa Itkonen as saying that contrary to gas and electricity, oil markets are unregulated, so there is no existing standard process to collect data in a crisis. The Commission has a full overview of fuel quantities of member-states, but it will not comment on jet fuel volumes available with companies, citing confidentiality and lack of access to commercial contracts. The Commission meets weekly with member-states, industry representatives, the IEA, and other stakeholders.

• Ukraine's air force: TASS reported on an opinion by Ukrainian analyst Sergey Budkin that the Ukrainian air force may face a shortage of jet fuel for F-16 and Mirage fighters due to the conflict Middle East. He wrote on Facebook that's the 20% loss of oil from the region has had a disproportionate impact on the jet fuel market, and that fuel rationing in Europe seems very likely could limit supplies.

Perspectives

• European Union officials — Transport Commissioner Apostolos Tzitzikostas sought to reassure that there is no evidence of actual shortages, that the market is managing the pressure, and that widespread flight delays are not expected. He said the EU would release emergency stocks only if necessary. Energy Commissioner Dan Jorgensen acknowledged a difficult summer and said the EU might redistribute and share jet fuel resources if needed.

• International Energy Agency — The IEA head, Fatih Birol, called the conflict between Iran and the United States and Israel the worst energy crisis ever faced by the world, and warned that Europe may have only six weeks of jet fuel supply left if the blockade continues. The IEA had already agreed in March to release a record 400 million barrels from strategic stockpiles.

• Ukrainian analyst — Sergey Budkin, co-founder of the investment banking firm FinPoint, argued that fuel rationing in Europe could limit supplies to the Ukrainian air force, which relies on jet fuel that has doubled in price since before the war.