Sweden warns of potential jet fuel shortages due to Middle East tensions

The Swedish government has issued an early warning regarding a potential shortage of jet fuel, citing supply chain disruptions caused by conflict in the Middle East and the closure of the Strait of Hormuz. Energy Minister Ebba Busch, alongside Prime Minister Ulf Kristersson and Swedish Energy Agency Director Caroline Asserup, stated that the agency's assessment indicates risks for future supply, even if regional conflicts were to cease soon. Approximately 20% of the European Union's jet fuel supply typically passes through the Strait of Hormuz. While there is currently no systemic shortage in the EU, global price volatility and supply chain concerns are mounting. Some reports indicate that global aviation costs have surged, with oil prices reportedly rising to between $150 and $200 per barrel in recent weeks, causing major airlines like United Airlines and the Lufthansa Group to consider flight cancellations and ticket price increases. While Sweden remains less exposed due to its domestic energy production, officials emphasized that a prolonged conflict would likely have significant future impacts. Airlines are currently revising financial forecasts downwards, noting that fuel accounts for up to 25% of operational expenses.