Montreal – The Director General of the International Air Transport Association (IATA), Willie Walsh, stated that restoring jet fuel supplies and prices to normal levels will take several months. This timeframe is expected even with the reopening of the Strait of Hormuz. The reopening is part of a ceasefire agreement between the United States and Iran.
Walsh told reporters that returning to desired supply levels requires time. This is due to disruptions in refining capacity in the Middle East. He added, “I do not believe this will happen within a few weeks.”
He also stated that continued disruptions in refining capacity will prolong the problem. This will occur even if crude oil flows resume normally.
His remarks followed a sharp drop in oil prices. This occurred after the United States and Iran agreed to a two-week ceasefire. The agreement includes a temporary reopening of the Strait of Hormuz. This development directly impacted global markets.