Merz Convenes Germany’s Security Council over Looming Jet Fuel Crunch

Why It Matters

A jet‑fuel crunch would strain airline operations and increase travel costs, making energy security a top priority for European economies.

Key Takeaways

• Jet fuel prices in Europe have more than doubled since February.
• Germany's National Security Council will coordinate rapid response measures.
• Economy Minister Reiche plans meetings with airlines and fuel suppliers.
• EU officials downplay risk despite airlines cutting flights.

Pulse Analysis

The war sparked by the United States and Israel’s February 28 strike on Iran has quickly turned the Strait of Hormuz into a geopolitical flashpoint. The narrow waterway carries roughly 20% of global oil shipments, and Tehran’s retaliation—blocking most traffic—has choked the flow of crude and refined products to Europe. Jet fuel, a derivative of crude, has seen prices more than double in a matter of weeks, eroding airline margins and prompting carriers such as Lufthansa and KLM to trim schedules. The price surge underscores how regional conflicts can ripple through global supply chains, affecting sectors far beyond the immediate combatants.

In response, German Chancellor Friedrich Merz announced that he will promptly convene the nation’s National Security Council, a body created last year to manage high‑impact threats. The council, comprising key ministries and industry experts, will assess the risk of a jet‑fuel crunch and deploy “all available instruments” to safeguard supply. Economy Minister Katherina Reiche has already drafted contingency plans, scheduling talks with fuel producers, airline representatives, and airport operators to secure allocations and explore alternative sourcing. Berlin’s proactive stance signals a willingness to intervene directly if market conditions deteriorate further.

The German move contrasts with the European Commission’s more restrained messaging, which insists there is no immediate shortage. Nevertheless, industry analysts warn that even a normalization of shipping through the Hormuz corridor will not instantly lower prices; the market may remain tight for months. For airlines, the lingering cost pressure could accelerate fleet modernization toward more fuel‑efficient aircraft and spur interest in sustainable aviation fuels. Investors and policymakers alike will watch how Germany’s coordination effort influences broader EU policy, potentially reshaping the continent’s energy‑security framework.