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EU jet fuel stock could be released if the disruption to Hormuz continues

An?EU spokesperson said on?Friday that the?European Union was prepared to coordinate a release?of?jet fuel stocks if disruptions to the Strait?of Hormuz persisted, even though Iran temporarily reopened this key waterway. European regulators and airlines have warned that flight cancellations and aircraft groundings could disrupt summer travel, if jet fuel supply bottlenecks in the Middle East related to the Iran War do not ease soon.

Iran announced on Friday that it will reopen the Strait Of Hormuz for commercial shipping after a ceasefire in Lebanon. Donald Trump, the U.S. president, said that a U.S. navy blockade would continue until an agreement with Tehran was reached. Hapag-Lloyd, a shipping?firm, said that it would not transit the Strait of?Hormuz until it had assessed?Iran?s announcement. There are currently no fuel shortages within the EU. "We are preparing, however, for possible shortages of jet-fuel," said the EU spokesperson in a press release. The bloc could release its reserves if the Strait remains disrupted.

If the situation in the Strait of Hormuz persists, the EU is preparing for a coordinated release of jet fuel. The spokesperson said that Iran's announcement?did not change current plans and it would become clearer next weekend whether or not the strait is open. The comments are the most direct the 'EU has made so far. They follow an earlier call by Germany's biggest aviation lobby to release Europe's strategic jet-fuel'reserves' in support of the sector. Next week, the 'EU will also announce plans to optimize refinery capacity in order to address an upcoming jet fuel shortage. (Reporting by Joanna Plucinska. (Editing by Hugh Lawson, Mark Potter and Hugh Lawson)

(source: Reuters)