Europe Faces Jet Fuel Crunch in Weeks; Saudi Pipeline Hit After Ceasefire
Global supply disruptions from Hormuz closure and new attacks keep oil markets volatile, impacting Bakken pricing outlook.
Europe faces a systemic jet fuel shortage within three weeks if the Strait of Hormuz remains restricted, a major airport trade group warned on Thursday. According to ACI Europe, the crisis has exposed the EU's reduced refining capacity and acute dependence on imports, which could trigger severe airport disruptions and hurt the continent's economy during the peak summer travel season.
The warning comes as global oil markets grapple with continued instability despite a declared ceasefire in the Iran war. Hours after the ceasefire, a drone attack on Wednesday damaged a Saudi Arabian pumping station on a critical cross-country pipeline, reducing its throughput by 700,000 barrels a day, the Saudi Press Agency reported.
Saudi oil exports via the Red Sea terminals remain steady at about 4 million barrels a day for now, according to tanker tracking data. The kingdom had quadrupled shipments from those ports since late February to ease the impact of the near shutdown of the Strait of Hormuz. The attacked pipeline is the only major alternative to Hormuz for Persian Gulf crude, with a nameplate capacity of 7 million barrels a day.
The closure of the Strait of Hormuz during the conflict has already pushed oil prices above $100 a barrel, slamming the global aviation industry. Willie Walsh, director general of the International Air Transport Association, said that while the ceasefire is positive, jet fuel and ticket prices will remain elevated for some time. Airlines have responded with higher fuel surcharges and baggage levies.
In recent days, supply concerns have grown tangible, with seven Italian airports restricting access to jet fuel due to shortages. Other nations, including China, have taken measures to safeguard local supplies. ACI Europe has called on the EU to monitor and assess jet fuel production and availability for the next six months.
For Bakken operators, these persistent disruptions underscore the global fragility of crude and refined product logistics that support price benchmarks. The ongoing risk to key chokepoints, even post-ceasefire, maintains a floor of geopolitical risk premium in the market. The direct attack on Saudi infrastructure highlights that supply security remains immediate, not theoretical, which can influence the differentials and realized prices for North Dakota light sweet crude.
Source
According to Rigzone reports from April \[10-11\], 2026, citing Bloomberg.
