U.S. airlines are experiencing a significant surge in jet fuel costs following the resurgence of hostilities in the Middle East, which has disrupted the brief U.S.-Iran détente. Brent crude oil prices have surpassed $100 per barrel, further straining the financial outlook for the sector. Spot jet fuel prices surged nearly 30% in July, impacting airlines’ earnings projections. The U.S. jet fuel market, while not facing supply shortages like Europe, has seen tightened conditions since March. OPEC’s production decisions will be crucial in the coming months as the market continues to react to geopolitical developments.
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