The escalating conflict in the Persian Gulf is doing more than curtailing global oil and gas supply—it is also denting regional energy demand. By taking a toll on local air travel, the war has caused a precipitous drop in jet fuel consumption.

Here is the current status of air travel demand:

A 60% Regional Freefall. In just four days since the onset of the conflict, Middle Eastern jet fuel demand plummeted by more than half. While we’ve seen some “bounce back,” consumption remains more than 40% below pre-war levels.

 UAE: A Historic Standstill for Dubai. The impact on the United Arab Emirates has been staggering. Demand fell by 95% in the opening days of the war to the lowest reading since Kayrros began measurements in 2018. Since then, has partially recovered to 35-40% of pre-war levels. For the UAE, home to the critical global transit hub of Dubai, the plunge was even steeper than at the peak of the COVID-19 pandemic.

 Global Ripple Effects: Although the Middle East is only one part of the global market, the regional drop was so severe it slashed global jet fuel use by 15% in a single week. As of March 11, global jet fuel consumption had dropped by more than 900 thousand barrels per day compared to pre-war highs.

The Bottom Line: While some airports are resuming operations for evacuations, the “hub” status of the region is under pressure. With kinetic strikes in the Gulf, tourists and connecting flights are diverting elsewhere.

Want to hear more about this story or access our full analysis?

Get in touch with our research team here: https://lnkd.in/eBxx8gNF