Iran Tensions Push Brent Crude to $110, Rippling Through Airlines and Fuel Supplies

Brent crude oil climbed above $110 a barrel after Iran restricted traffic through the Strait of Hormuz, driving jet fuel prices higher and forcing airlines and refiners to adjust operations. The waterway normally carries nearly one-fifth of global oil and gas shipments. Disruptions have already contributed to Spirit Airlines halting flights and prompted warnings from other carriers about possible winter bankruptcies.

Ryanair CFO Neil Sorahan told CNBC that weaker airlines already under pressure before the conflict could fail as fuel costs remain elevated. The Irish carrier hedged 80 percent of its fuel needs at $67 a barrel, shielding it from much of the recent spike. Jet fuel reached nearly $200 a barrel before easing to roughly $163, according to International Air Transport Association data.

The same supply squeeze has affected distant markets. Indian refiners cut alkylate output to increase liquefied petroleum gas production for domestic cooking needs after Middle East imports fell. California, which relies on alkylate for its clean-burning gasoline blend, now faces tighter supplies on top of already high pump prices that hit $6.16 a gallon in early May, GasBuddy reported. The state’s energy commission says inventories remain adequate but is monitoring the situation closely.

President Trump posted on Truth Social that “the Clock is Ticking” for Iran and urged faster movement on peace talks. The International Energy Agency noted global oil inventories are falling at a record pace and could approach historic lows by the end of May if current demand holds. Analysts at UBS and Abaxx Commodity Exchange warned that physical shortages could appear in Europe by month-end and intensify during the U.S. summer driving season.

The conflict has revived debate over energy security. Some policymakers argue that decentralized renewables reduce exposure to centralized fossil infrastructure vulnerable to attack. Others point to new dependencies on imported solar panels and battery minerals. No single approach has yet eliminated the price and availability risks created by the Hormuz bottleneck.