Oil Near $97 as IEA Warns of Europe Jet Fuel Crisis

Brent crude traded between $94.89 and $97.06 per barrel on April 16 as the Strait of Hormuz blockade continued to disrupt seaborne flows. The International Energy Agency chief warned that Europe has "maybe 6 weeks of jet fuel left" at current consumption.

Why Europe Is Exposed

About 75% of European jet fuel imports come from the Middle East region. The Hormuz disruption has cut into refined-product flows even more sharply than crude, as European refineries are not configured to fully replace Middle Eastern jet kerosene from regional or US sources alone.

Airlines Cutting Schedules

KLM has cut 160 flights for May. SAS cancelled 1,000 April flights. Ryanair has signaled additional cuts. Carriers are prioritizing long-haul and high-yield routes while quietly trimming peripheral services, an approach that protects margins but limits capacity for the summer travel peak.

What Could Change It

A US-Iran de-escalation, hinted at by Trump's "very close" comments on April 17, would reopen Hormuz and ease both crude and jet fuel flows almost immediately. Until then, European governments are exploring strategic stock releases, but officials concede that even those buffers buy only a few weeks.