Shell Plc is operating its European oil refineries at maximum capacity to produce jet fuel. This production surge addresses a supply shortage triggered by the ongoing conflict in Iran. The near-total closure of the Strait of Hormuz has blocked a primary external supply route for Europe.
EasyJet, Alaska Air Group, KLM, and Lufthansa are reporting increased fuel costs and flight cancellations. The head of Shell’s Pernis refinery in Rotterdam confirmed all European facilities are in max jet mode. Refineries are currently utilizing stockpiled oil while seeking alternative crude sources.