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The European Commission warned that the EU jet fuel market could become increasingly tight in the coming weeks if the situation in the Strait of Hormuz does not improve.
The warning came after the latest meeting of the commission’s oil and gas coordination groups, where officials assessed the impact of the effective closure of the Strait of Hormuz on crude oil and major petroleum products.
The commission said all EU countries were affected by market dynamics linked to the strait, though the bloc has so far seen price effects rather than physical supply disruptions at the consumer level.
“The Oil Coordination Group signalled that the closure of the Strait of Hormuz impacts both crude oil and all major petroleum products, and that all EU countries are affected by the dynamics,” the commission said.
“So far, the EU has been experiencing price effects, with no physical supply disruptions at the consumer level,” it added.
The Strait of Hormuz remains central to market concerns because its closure affects both crude oil and petroleum product flows, according to the commission’s assessment.
The commission warned that markets could tighten further if conditions around the Strait of Hormuz do not improve soon.
“However, if the situation does not improve in the next weeks, markets are expected to become increasingly tighter, especially for jet fuel,” it said.
Jet fuel prices have risen more sharply than any other oil product, including petrol, since the Middle East conflict led to the effective closure of the Strait of Hormuz.
Airlines have canceled flights as pressure on the jet fuel market has grown.
The warning comes after renewed optimism over a possible deal between the U.S. and Iran at the weekend.
However, new overnight strikes have raised doubts over whether the fragile ceasefire will hold.
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