Hormuz Blockade Sends Jet Fuel to $205 a Barrel and Cancels Thousands of Flights

Iran's closure of the Strait of Hormuz has triggered emergency fuel rationing at seven Italian airports, forced airlines to cut routes and raise fares, and sharpened the energy security case for domestic SAF production

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SAFpath News Desk

April 9, 2026

Image Source: SAF Path

Summary: Iran's closure of the Strait of Hormuz has pushed jet fuel to $4.88 per gallon ($205 per barrel) as of April 2, 2026, triggering emergency fuel rationing across European airports and thousands of flight cancellations. A single Monday in early April saw 7,049 global flights canceled. United Airlines is cutting 5% of routes, Delta Air Lines has logged a $400 million fuel charge, and Ryanair CEO Michael O'Leary warns the UK is the most exposed European country. The crisis has made the energy security case for domestic SAF production more compelling than at any prior point in the industry's history.

Iran’s closure of the Strait of Hormuz has pushed jet fuel to $4.88 per gallon ($205 per barrel) as of April 2, 2026, triggering widespread flight cancellations, emergency fuel rationing at European airports, and hundreds of millions in airline fuel charges. The Strait carries roughly one-fifth of global oil supply; its closure followed a US-Israel bombing campaign launched February 28, and has forced tankers to divert around the Cape of Good Hope, adding weeks to delivery timelines and removing spot supply from markets that depended on it.

For the sustainable aviation fuel sector, the Hormuz crisis has compressed years of energy security advocacy into a single, visible supply shock. SAF produced from domestic agricultural waste, biomass, or power-to-liquid processes carries no exposure to Middle East supply chain disruption. Airlines burning conventional jet fuel sourced via Hormuz-exposed routes have no such insulation.

Of all the European countries at the moment, the one that is most vulnerable is the UK because of the market share that the Kuwaitis have here. Michael O’Leary, CEO, Ryanair

The disruption is already operational rather than theoretical. Air BP Italia issued emergency NOTAMs restricting refueling at seven Italian airports: Bologna, Milan Linate, Venice Marco Polo, Treviso, Brindisi, Pescara, and Reggio Calabria, with caps as low as 2,000 litres per aircraft for non-priority short-haul flights. A single Monday in early April saw 7,049 of 104,618 scheduled global flights canceled (6.7%), with 14.6% of all North American departures grounded on the same day. Average airfares for the week of March 9 were up 24% year-on-year at $465 (OAG data), the highest for that period since at least 2019.

United Airlines CEO Scott Kirby announced approximately 5% route cuts for Q2 and Q3 2026, including around 3% of midweek and red-eye flights and 1% at Chicago O’Hare. Kirby stated directly: we have to raise prices to deal with higher fuel prices. Delta Air Lines has logged a $400 million charge attributable to fuel costs. Vietnam Airlines has warned it may cut 10 to 20% of flights if jet fuel stays at or above $160 to $200 per barrel, a threshold already surpassed as of early April. Ryanair CEO Michael O’Leary predicted 5 to 10% UK flight cancellations if the Strait remains closed through summer, describing the UK as the most vulnerable European country due to Kuwaiti fuel market share. Guernsey carrier Aurigny has already cancelled flights from mid-April through early June. IATA has stated jet fuel supply could take months to recover even after a ceasefire.

The SAF argument from this crisis is not hypothetical. Had even a fraction of the conventional jet fuel burned by European and UK carriers over the past six weeks been replaced by domestically produced SAF, those operators would have faced a materially smaller exposure to the Hormuz supply shock. The crisis sets a concrete case study for national aviation security strategies in jurisdictions that lack domestic fuel production capacity.

This article synthesises reporting from FTN News, Politico EU, OAG, and IATA statements. Source data spans multiple outlets.

Source: FTN News

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