Strait of Hormuz Blockade Drives Global Aviation Fuel Surge

Global aviation fuel prices rose sharply last week, with average jet fuel prices climbing 7.1% to $160.06 per barrel and aviation fuel increasing 17.6% to $149.40 per barrel. These spikes are attributed to an ongoing shipping blockade of the Strait of Hormuz and a broader conflict involving Iran. Year-on-year, jet fuel prices have increased by 77.8% since 2025.

Regional dynamics show a divide between production and demand. The Government of Oman recorded a 9.2% increase in aviation fuel production and a 20.9% rise in exports during the first half of 2026. Conversely, Middle East carriers saw a 14% year-on-year decline in demand, reflecting the impact of the regional conflict on air traffic.

Crude oil markets remained volatile. Brent crude futures reached $85.02 per barrel and WTI futures rose to $81.24 per barrel on Tuesday morning, though these movements followed signs that tensions in the Middle East conflict were easing.