Oil Surges Above $100 as Iran Crisis Triggers Global Aviation Disruptions

Oil prices rose during trading on Wednesday, surpassing the $100 mark, according to data from the London ICE exchange.

Brent Crude Exceeds $100

June futures contracts for the benchmark North Sea Brent crude increased to $101.5 per barrel, which is $3.02 higher than the previous day's level. Over the course of the day, oil gained 3.07 percent.

At the same time, Texas WTI crude for June delivery also rose in price during trading on the New York Mercantile Exchange. Contracts increased by $2.7, or 3.01 percent compared to Tuesday's close, reaching $92.37 per barrel.

Earlier, it became known that the European Commission excluded from the 20th sanctions package a ban on the transportation of Russian oil, proposing that European Union countries urgently adopt the package in a reduced form.

Against the backdrop of Ukraine halting oil supplies through the Druzhba pipeline, the revised sanctions package removed a "full ban on the transportation of Russian oil and the provision of services for these shipments, including insurance.”

Aviation Sector Under Pressure

The sharp rise in oil prices is already having a significant impact on global aviation. Escalating tensions in the Middle East have disrupted energy supply routes and driven up the cost of jet fuel, placing airlines under increasing financial pressure.

Major carriers have begun reducing operations to cope with rising fuel costs and potential shortages. Lufthansa has announced plans to cancel thousands of flights in the coming months as part of efforts to stabilize its operating expenses. Other airlines across Europe, North America, and Asia are also cutting routes, grounding aircraft, or scaling back capacity.

Fuel costs, which represent a substantial share of airline expenses, have surged sharply, forcing carriers to reassess schedules and introduce additional surcharges on tickets. The situation is further complicated by concerns over the reliability of supply chains, particularly as key transit routes remain exposed to geopolitical risks.

Industry experts warn that continued disruption could lead to broader shortages of aviation fuel, especially in Europe, potentially affecting the peak travel season. As a result, passengers may face higher prices, reduced flight availability, and ongoing uncertainty in global air travel.