Jet Fuel Crack Spreads Hit Record Highs Amid Strait of Hormuz Closure

Key Facts

Jet fuel and diesel premiums over Brent crude have surged to record highs as geopolitical tensions in the Middle East disrupt global supply chains. The de facto closure of the Strait of Hormuz has created a massive supply shock, causing refined product markets to experience more severe stress than crude oil itself. In response to the logistical deadlock, Asian refiners are reportedly considering significant cuts to processing rates and export limitations. The soaring crack spreads reflect a growing scarcity of refined fuels, driven by the inability to transport products through one of the world's most critical maritime chokepoints. Market analysts warn that the ongoing conflict involving Iran could lead to prolonged price volatility and sustained high margins for energy producers. This supply dislocation poses a significant challenge for the global aviation industry as fuel costs continue to climb alongside rising geopolitical risks.