The global oil market is wildly complex, with thousands of interconnected parts all working seamlessly together to keep the world’s economy humming. Most of the time, no one notices.
Until it breaks.
It’s been two and a half months since the war with Iran ruptured the crude oil market, and the aftershocks are starting to to show up in unexpected ways. Among the many quirks: A European jet fuel shortage – that Americans are paying for at the gas pump.
Between February 23 and April 27, gas prices grew faster in the United States than they did in almost every single country in the world except for Myanmar, Malaysia, Pakistan and the Philippines, according to JPMorgan analysts. The US was 5th, just ahead of Cambodia. Americans are now paying $4.48 for a gallon of regular gas — 50% more than it cost before the war began.
Four weeks ago, the International Energy Agency warned that Europe had about six weeks of jet fuel left. If the Strait of Hormuz wasn’t reopened, airlines would need to drastically cut routes and cancel flights to compensate, it said.
