Middle East War Disrupts Global Energy Flows
The conflict has forced the shutdown of the Strait of Hormuz, effectively halting maritime commerce through one of the most crucial passages for global oil transportation and causing jet fuel costs to surge to twice their usual levels.
The Strait of Hormuz serves as an essential maritime corridor located at the entrance of the Persian Gulf, linking oil and liquefied natural gas production across the Middle East to international markets through the Arabian Sea and the Indian Ocean.
Approximately 20% of the world's daily oil consumption—equivalent to 20 million barrels—passes through this route. Of this volume, around 15 million barrels consist of crude oil, while the remaining 5 million barrels are refined petroleum products.
After the war began on Feb. 28, Iran’s retaliatory measures and the ensuing exchanges of attacks significantly disrupted commercial shipping. As a result, safety concerns escalated sharply within the Strait of Hormuz, triggering a substantial interruption in global oil supply chains.
Consequently, Brent crude prices surged beyond $100 per barrel, while limited supply placed additional upward strain on other refined fuels, particularly jet fuel.
Data from the S&P Global Energy indicates that roughly 177,000 barrels of jet fuel are delivered daily from the Middle East and northwestern Europe. Meanwhile, about 31,000 barrels are transported to southern Europe and the eastern Mediterranean, 100,000 barrels to Africa, and 17,000 barrels to Asia.
Moreover, approximately 34,000 barrels of jet fuel originating from the region are shipped through the Suez Canal, eventually reaching the Red Sea, with Egypt being the primary destination.
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