Middle East Conflict and Hormuz Closure Disrupt Oil Markets as Sustainable Aviation Fuel Use Remains at About 0.7% of Airline Fuel
Why It MattersFuel-supply shocks of this scale strengthen the case for diversified energy sources while renewable fuel producers still weigh costs and uncertain regulatory support, and sustainable aviation fuel remains a small share.
The first quarter of this year was marked by the Middle East conflict and the closure of the Strait of Hormuz, which created the largest supply disruption in the history of the global oil markets and led to extreme volatility in crude oil and oil product prices.
The disruption adds to other changes that were already facing the renewable energy industry last year, including higher raw material costs, uncertainty over regulatory support and geopolitical tensions. Some of these changes have dampened producers' willingness to invest in production.
