Extended sanctions against Iran due to its nuclear deal collapse could disrupt global jet fuel supplies.

The country’s fuel is a critical component of aviation fuels, used by nearly all commercial airlines worldwide. Prices for these fuels are currently rising as tensions escalate. Iran has significant oil reserves and is the world’s second-largest oil producer, accounting for 15% of global production. The US, EU, and some other countries have imposed sanctions that restrict Iranian access to international banking networks and limit its ability to export refined products like jet fuel. These restrictions could cause a shortage in the coming months, potentially driving up prices and impacting air travel. The aviation industry already faces rising costs due to increasing demand and airline fees. Higher jet fuel prices would add another layer of pressure on airlines, potentially forcing them to raise ticket fares or reduce services.