British tourists are being warned to brace for soaring ticket prices for months as a dramatic squeeze on global jet fuel supplies threatens to send shockwaves through the aviation industry. Energy experts have described the situation as the “biggest disruption in the history of the energy market”, with turbulence in key oil shipping routes raising fears of prolonged travel cost increases.
Speaking to MPs on the Treasury Committee, leading analyst Dr Amrita Sen said the unfolding crisis is already having a severe impact on jet fuel availability – with airlines likely to pass rising costs directly on to travellers. She warned: “It is really crazy what’s going on in the jet market.” The disruption centres on the strategically vital Strait of Hormuz, a narrow waterway through which a significant share of the world’s oil supply is transported. With crude shipments struggling to move safely through the region, refineries in the Middle East and Asia – responsible for producing large volumes of jet fuel – are facing mounting pressure.
Without sufficient crude reaching these facilities, production of aviation fuel is being choked off, just as global travel demand remains strong. Experts say the resulting supply crunch could leave airlines with little choice but to hike fares.
Tensions in the Middle East have escalated after US-Israeli strikes on Iran since February 28 raised fears Tehran could disrupt shipping through the strategically vital Strait of Hormuz, a narrow route used to transport a huge share of the world’s oil.
The founder and director of market intelligence at market analyst Energy Aspects, told MPs she expects “quite significant rises in airfares” in the near future, adding that passengers should prepare for higher prices to persist.
“In general, we absolutely should be expecting higher airfares for at least the next couple of months,” she said.
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While analysts have noted that current price shocks have not yet matched, the extreme market turmoil seen after Russia‘s invasion of Ukraine, the jet fuel sector appears particularly exposed.
Industry insiders fear the disruption could ripple through the wider economy, hitting holidaymakers, business travel and cargo operations alike.
Popular long-haul routes may be especially vulnerable to price spikes, while budget airlines could also be forced to adjust fares or cut capacity.
With geopolitical tensions showing little sign of easing, travellers are now being urged to book early and expect volatility – as one of the most critical arteries of the global energy system remains under threat.
This story originally appeared on Express.co.uk
