Europe has “maybe 6 weeks or so (of) jet fuel left,” the head of the International Energy Agency said on Thursday, warning that flight cancellations could begin “soon” if oil supplies continue to be disrupted due to the Iran war, as cited by AP.Fatih Birol described the situation as “the largest energy crisis we have ever faced,” citing the impact of disruptions to oil, gas and other key supplies passing through the Strait of Hormuz.“In the past there was a group called ‘Dire Straits.’ It’s a dire strait now, and it is going to have major implications for the global economy. And the longer it goes, the worse it will be for the economic growth and inflation around the world,” he said. The impact will be “higher petrol (gasoline) prices, higher gas prices, high electricity prices.”He said the economic impact would be uneven, with some countries “hit worse than the others,” identifying Japan, South Korea, India, China, Pakistan and Bangladesh as being on the front line of the energy crisis.“The countries who will suffer the most will not be those whose voice are heard a lot. It will be mainly the developing countries. Poorer countries in Asia, in Africa, and in Latin America,” he said. “Then it will come to Europe and the Americas.”Birol warned that if the Strait of Hormuz is not reopened, Europe could soon face disruptions, saying, “I can tell you soon we will hear the news that some of the flights from city A to city B might be canceled as a result of lack of jet fuel.”He also criticised Iran’s so-called “toll booth” system for ships passing through the strait, cautioning that if it becomes permanent, it could set a precedent for similar measures in other key waterways, including the Malacca Strait in Asia.“If we change it once, it may be difficult to get it back. It will be difficult to have a toll system here, applied here, but not there,” he said.
