The aviation crisis starting to grip Asia is threatening to intensify and spread to Europe and beyond, as energy turmoil caused by the Iran war collides with seasonal travel demand.
The amount of jet fuel lost because of the conflict is ultimately too much for the world’s refiners to offset. Airlines from Vietnam to New Zealand have started canceling flights as price surge to record highs, while China has curbed fuel exports to secure supplies. Asia has been particularly affected because of its exposure to crude oil that normally comes through the Strait of Hormuz, which has been blocked by Iran.
The European Union and the U.K. could be weeks away from similar conditions as they depend on supplies from refineries inside the Persian Gulf. Even in the U.S. — a net oil exporter — some regions are reliant on vulnerable Asian supply, and carriers such as United Airlines Holdings Inc. are already responding to high prices by canceling some unprofitable services.
AloJapan.com