AP Exclusive: Europe has 'maybe 6 weeks of jet fuel left,' energy agency head warns

yahoo.com ∙ 23 hours ago

AP Exclusive: Europe has 'maybe 6 weeks of jet fuel left,' energy agency head warns

Top line

IEA warns of a severe global energy crisis with Europe having six weeks of jet fuel left, potentially leading to flight cancellations and economic recession if the Strait of Hormuz blockade persists.

Summary

Fatih Birol, head of the International Energy Agency (IEA), has warned of the world's largest energy crisis to date, directly linked to the blocking of the Strait of Hormuz due to the Iran war. Birol stated that Europe has only about six weeks of jet fuel remaining, forecasting potential flight cancellations and significant global economic repercussions, including higher energy prices and risks of recession, particularly for developing nations. He cautioned that even with a resolution, extensive war damage to energy infrastructure could prolong recovery to up to two years. The crisis highlights the vulnerability of global supply chains and the deep connection between energy security and geopolitics, with Birol opposing any precedent-setting measures like Iran's 'toll booth' system for shipping lanes.

Highlights

The head of the International Energy Agency (IEA), Fatih Birol, warned that Europe has approximately six weeks of remaining jet fuel supplies.
This situation stems from the blocking of vital oil and gas supplies through the Strait of Hormuz due to the Iran war.
Birol described this as potentially the 'largest energy crisis we have ever faced,' with significant implications for the global economy.
The crisis is predicted to lead to higher prices for petrol, gas, and electricity.
Developing countries in Asia, Africa, and Latin America are expected to suffer the most severe economic consequences.
Even wealthier nations are not immune, and the crisis could lead to slow growth or even recession.
The Strait of Hormuz is a critical chokepoint, handling nearly 20% of the world's traded oil during peacetime.
If the Strait is not reopened within weeks, flight cancellations due to a lack of jet fuel are anticipated.
Airlines like KLM and easyJet are currently not experiencing fuel shortages but acknowledge rising costs; KLM is already reducing flights due to 'rising kerosene costs.'
Beyond flight cancellations, other carriers are increasing ticket fares and add-on fees.
IEA warns that if the Strait of Hormuz is not open by the end of May, weaker economies could face huge challenges, leading to high inflation and potential recession.
Birol voiced opposition to Iran's 'toll booth' system for ships passing through the Strait, fearing it could set a dangerous precedent for other vital waterways.
Over 110 oil tankers and 15 LNG carriers are waiting in the Persian Gulf, but their cargo is insufficient to fully alleviate the crisis if they cannot pass.
Even with a peace settlement, war damage to energy facilities means production levels may take up to two years to recover, with over 80 key assets damaged, one-third severely.
Birol expressed dismay that a small group can hold the global economy hostage, emphasizing the critical importance of the Strait of Hormuz.
The global shock could accelerate the adoption of alternative energy technologies like nuclear power and reshape the global energy landscape.
The crisis underscores the profound and often 'dark' intertwining of energy and geopolitics.

AP Exclusive: Europe has 'maybe 6 weeks of jet fuel left,' energy agency head warns

yahoo.com ∙ 23 hours ago

Top line

IEA warns of a severe global energy crisis with Europe having six weeks of jet fuel left, potentially leading to flight cancellations and economic recession if the Strait of Hormuz blockade persists.

Summary

Highlights

The head of the International Energy Agency (IEA), Fatih Birol, warned that Europe has approximately six weeks of remaining jet fuel supplies.
This situation stems from the blocking of vital oil and gas supplies through the Strait of Hormuz due to the Iran war.
Birol described this as potentially the 'largest energy crisis we have ever faced,' with significant implications for the global economy.
The crisis is predicted to lead to higher prices for petrol, gas, and electricity.
Developing countries in Asia, Africa, and Latin America are expected to suffer the most severe economic consequences.
Even wealthier nations are not immune, and the crisis could lead to slow growth or even recession.
The Strait of Hormuz is a critical chokepoint, handling nearly 20% of the world's traded oil during peacetime.
If the Strait is not reopened within weeks, flight cancellations due to a lack of jet fuel are anticipated.
Airlines like KLM and easyJet are currently not experiencing fuel shortages but acknowledge rising costs; KLM is already reducing flights due to 'rising kerosene costs.'
Beyond flight cancellations, other carriers are increasing ticket fares and add-on fees.
IEA warns that if the Strait of Hormuz is not open by the end of May, weaker economies could face huge challenges, leading to high inflation and potential recession.
Birol voiced opposition to Iran's 'toll booth' system for ships passing through the Strait, fearing it could set a dangerous precedent for other vital waterways.
Over 110 oil tankers and 15 LNG carriers are waiting in the Persian Gulf, but their cargo is insufficient to fully alleviate the crisis if they cannot pass.
Even with a peace settlement, war damage to energy facilities means production levels may take up to two years to recover, with over 80 key assets damaged, one-third severely.
Birol expressed dismay that a small group can hold the global economy hostage, emphasizing the critical importance of the Strait of Hormuz.
The global shock could accelerate the adoption of alternative energy technologies like nuclear power and reshape the global energy landscape.
The crisis underscores the profound and often 'dark' intertwining of energy and geopolitics.