Europe has ‘maybe 6 weeks of jet fuel left,’ energy agency head warns – business live

Europe is facing a near-term jet fuel squeeze, with IEA chief Fatih Birol warning the region has “maybe 6 weeks or so” of supply left if Middle East shipping disruption persists. He said flight cancellations could begin soon, and that the impact will cascade from Asia into Europe and the Americas if the Strait of Hormuz remains effectively blocked. The direct market takeaway for precious metals is a firmer inflation and risk-premium backdrop, which should keep support under gold on any renewed energy spike. Birol framed the current situation as the “largest energy crisis we have ever faced,” while the IMF’s Kristalina Georgieva warned that tanker delays and logistics disruption will persist even after fighting stops. The article also highlights that refined products, not just crude, are driving the stress: jet fuel prices are described as still above 2022 peaks, with diesel not far off. EasyJet said fuel costs rose £25m in the last month alone and that each $100/tonne move in jet fuel adds about £40m to unhedged costs, underscoring the real-economy inflation hit. For metals, the main near-term implication is higher macro volatility rather than a direct supply-chain impact. If energy prices keep surging, inflation expectations may re-accelerate and bolster safe-haven demand for gold, while broad risk assets and airline-linked sectors remain vulnerable. Watch for any further escalation around Hormuz, EU refinery measures, and signs of demand destruction in travel that could temper the inflation impulse later on.