Jet fuel’s huge price surge points to coming pain from Iran war

The blowout in jet fuel prices is probably overdone, with levels far beyond what is justified even by a worst-case scenario of an extended effective closure of the Strait of Hormuz. — Reuters

THE explosion in jet fuel prices in Asia is an early indicator that the economic pain of the war in the Middle East is about to become reality for energy consumers.

Jet fuel prices in Asia’s trading hub Singapore rocketed 72% to US$225.44 a barrel on Wednesday, a record high, on worries about future supplies given the disruption of about 20 million barrels per day (bpd) of crude oil and refined product shipments through the Strait of Hormuz.