17/04/2026

FRIDAY | APR 17, 2026

17

BIZ & FINANCE

Threat of grounded planes nears

the war – has been almost completely blocked since the United States and Israel began bombing Iran on Feb 28. The head of the International Energy Agency (IEA), Fatih Birol, also warned that Europe could face shortages of jet fuel “maybe beginning of May”. In its latest monthly report on the oil market, released on Tuesday, the IEA advanced a later date. “If the global jet fuel market tightens further and European markets are unable to secure more than 50% of their lost Middle East volumes, then stocks will hit the crucial 23-day level in June,” it warned. It is hard to make sweeping generalisations about the situation. Japan is heavily dependant upon imports but has built up considerable reserves. The situation also varies considerably with Europe. Austria, Bulgaria and Poland have comfortable stocks.

For Britain, Iceland and the Netherlands it is the opposite. France is somewhere in the middle. And the impact won’t be the same for all airports and airlines. “Smaller, inland located, airports will be in a weaker position than the main hubs,” ING Bank economist Rico Luman told AFP. “It won’t be a matter of full halt, but part cancellation at some airlines and airports,” he added. Airlines have little visibility to plan their flight schedules. Airlines for Europe (A4E), a trade association that includes Air France-KLM, Lufthansa and Ryanair, has been urging the European Union to begin providing real time information on jet fuel stocks at airports. The data would have to come from fuel suppliers, who are not enthusiastic about turning over sensitive commercial data to their major clients. TotalEnergies has warned that if

11 nations urge ‘coordinated’ economic support amid Mideast war LONDON: The finance ministers of 11 countries including Britain and Japan called on Wednesday for “coordinated emergency support” to help countries hit by disruptions from the war in the Middle East. “We call on the IMF and World Bank to provide a coordinated emergency support offer for countries in need, tailored to country circumstances and drawing on the full range and flexibility of their toolkits,“ the ministers said in a joint statement issued by the UK government. “Renewed hostilities, a widening of the conflict or continued disruption in the Strait of Hormuz would pose serious additional risks to global energy security, supply chains, and economic and financial stability,“ said the statement. “Even with a durable resolution of the conflict, impacts on growth, inflation and markets will persist.” “We reaffirm our unwavering support for Ukraine and our determination to maintain economic pressure on Russia,“ it said. “Russia’s war in Ukraine, now in its fifth year, continues to negatively impact the global economy. “Russia must not benefit from this conflict, and as market conditions allow to avoid exacerbating disruptions to supply chains and energy prices, we will continue collaborating on ways to increase pressure.” The countries that signed the statement were Australia, Finland, Ireland, Japan, The Netherlands, New Zealand, Norway, Poland, Spain, Sweden and United Kingdom. Britain’s finance minister Rachel Reeves, who was attending the International Monetary Fund and World Bank’s spring meetings in Washington, reaffirmed her country’s willingness to play its part to ensure free navigation through the Strait of Hormuz. “My Prime Minister, Keir Starmer, and the French President Emmanuel Macron are hosting talks in Paris on Friday this week about how we can, when there is a ceasefire, a proper ceasefire, how we can help that navigation through the Strait of Hormuz,“ she said at a forum organised by CNBC television. – AFP Regulary, political and logisitical issues mean there is little chance this could happen in the near future. – AFP oil supplies from the Gulf remain blocked in June it won’t be able to supply all of its customers. “If this war and this blockade last more than three months, we’ll begin to face some serious supply issues in some products like jet fuel,” the company’s chief executive Patrick Pouyanne said . Airlines for Europe has also suggested that the European Commission exceptionally authorise the import of United States jet fuel, which is produced to a slightly different standard than in the rest of the world.

o Risk of jet fuel shortages growing each day Strait of Hormuz remains closed

PARIS: Could planes soon be stuck on the ground due to a lack of fuel? The risk of jet fuel shortages is growing each day the Strait of Hormuz remains closed, although it is not certain when exactly supplies will run out. The risk of shortages is greatest in Asia, and to a lesser extent Europe, as they both rely on oil from the Gulf and its refineries for their supplies. “The situation can, within the next three, four weeks, become systemic,” Rystad Energy economist Claudio Galimberti said on US financial news channel CNBC on Tuesday about jet fuel shortages. “So you can have severe cuts of flights in Europe, already starting in May and June,” he warned. Galimberti said flights had already been cancelled due to fuel

shortages, but the European Commission on the same day said there was no lack of fuel as yet. “There is no evidence for fuel shortages in the European Union at present,” said spokeswoman Anna-Kaisa Itkonen. However she acknowledged that “supply issues could occur in the near future in particular for jet fuels”. Last week, the Airports Council International Europe wrote to the European Commission saying shortages of jet fuel could begin in three weeks – at the beginning of May, if tankers do not begin sailing through the Strait of Hormuz before then. Traffic through the Strait of Hormuz – through which a fifth of the world’s crude oil and liquefied natural gas supplies transited before

Attendees of the 2026 IMF and World Bank Group Spring Meetings watch a Muay Thai fight demonstration in Washington. – AFPPIC

IMF chief warns of ‘tough times’ if oil prices stay high WASHINGTON: IMF chief Kristalina Georgieva warned on Wednesday of difficult times ahead for the global economy if war in the Middle East is unresolved and oil prices stay high, adding that inflation risks could seep into food prices. of Hormuz, a key shipping route for oil and fertilisers. Energy prices have since surged, squeezing countries – especially vulnerable economies and those dependent on oil imports from the region. “If we are to move faster out of the war, it may not be necessary to take action,“ she said. But she conceded that countries where central banks lack such credibility might need to send stronger signals. about 9%, he added. The IMF estimates for now that near-term demand for new fund financing would be in the range of US$20 billion to US$50 billion. “Currently, we have 39

programmes, and prospective demand for new programs from at least a dozen countries, a number of them in sub-Saharan Africa,“ Georgieva said of the fund’s financial aid. “The sooner we act, the more we would protect the economy and the people,“ she added. She stressed the need to protect fiscal sustainability as countries move to help their populations, cautioning that “untargeted measures, export controls or broad-based tax cuts” could serve to “prolong the pain of high prices.” – AFP

For now, “we are still at a time when a faster resolution of hostilities is possible“, she said. Noting that fallout is “highly asymmetric,“ Georgieva urged IMF members to come forward to the Washington-based lender if they need financial assistance during the conflict. Low-income countries spend around 36% of their consumption on food, while emerging markets spend about 20%, said the IMF’s director of strategy Christian Mumssen. Advanced economies spend

“We are concerned about risks for inflation moving into food prices should the delivery of fertilisers at a reasonable price (not be) restarted soon,“ Georgieva said. But as countries move to limit price shocks on their citizens, Georgieva urged central banks to “wait and see” before adjusting interest rates if they can do so. She said this was particularly the case where the public has a “well-anchored” expectation of inflation being kept under control.

“We must brace for tough times ahead”if the conflict persists, she told reporters at a press briefing during the International Monetary Fund and World Bank’s spring meetings in Washington. The gathering brings government and financial leaders to the US capital this week, with policymakers looking to limit economic fallout from the war. US-Israeli strikes launched against Iran on Feb 28 sparked Tehran’s retaliation, virtually closing the Strait