IATA chief says jet fuel supply could take months to recover after Hormuz reopening

The head of a body representing global airlines said on Wednesday (April 2) that a recovery in jet fuel supplies could take months even if Iran reopens the Strait of Hormuz under a ceasefire agreement.

Oil fell below $100 per barrel after U.S. President Donald Trump said he had agreed to a two-week ceasefire with Iran that was subject to the immediate and safe reopening of the Strait of Hormuz, which normally carries about a fifth of the world's oil trade.

Willie Walsh, director general of the International Air Transport Association (IATA), said during a news conference in Singapore that while the ceasefire news had prompted early market reactions, supply chain disruptions would likely delay full recovery.

Walsh believes it will be "a period of months" before jet fuel and prices get back to where supply needs, given disruptions to Middle East refining capacity.

-Yi-Chin Lee and Pedja Stanisic/Reuters