The head of the International Air Transport Association (IATA) stated Wednesday that even if the Strait of Hormuz reopens, it will take months for jet fuel supply to normalize. Willie Walsh explained that Middle East refining capacity has been significantly impacted, a critical component of global refined product supply.
Disruptions to refinery operations mean that even with crude oil flowing again, restoring jet fuel production to adequate levels will be a gradual process. This comes as airlines globally grapple with elevated jet fuel costs, forcing flight adjustments and increased operational expenses. Walsh noted that the current high crack spreads, or refinery margins, could incentivize increased jet fuel production once crude oil supply stabilizes.