Airlines are starting to cancel flights as they face jet fuel shortages and rising prices brought on by the Iran war
Source: Msn/Business Insider
12h
First, the war made flights more expensive. Now, it's making them disappear. The US and Israel's war on Iran has disrupted supply chains, trapping oil in storage facilities across the Middle East. That has caused the price of oil to rocket past $100 a barrel, and its availability to diminish.
Jet fuel prices, as a result, reached $195 at the end of March, up nearly $100 from the end of February when the war began. And as the war drags on, jet fuel is getting harder to come by for countries that don't produce their own or have limited supplies.
International Energy Agency Executive Director Fatih Biro said during a podcast interview earlier this week that the loss of oil in April would be twice what was lost in March, resulting in a growing scarcity of jet fuel and diesel. "We are seeing that in Asia, but soon, I think, in April or May, it would come to Europe," he said.
June Goh, a senior oil market analyst at Sparta Commodities, said in a post on X that jet fuel requires specialized storage, which means there is less stored than other products, like gasoline.
Read more: https://www.msn.com/en-us/money/economy/airlines-are-starting-to-cancel-flights-as-they-face-jet-fuel-shortages-and-rising-prices-brought-on-by-the-iran-war/ar-AA20dDkW
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