Overview
- Oil prices fell after Wednesday's two-week U.S.–Iran ceasefire allowed cautious traffic through the Strait of Hormuz, with Brent down about 13% and WTI off roughly 16%.
- Even after the drop, crude remains well above the roughly $70 level before the war, and IATA and S&P say jet fuel jumped from about $90 to as high as $220 per barrel.
- S&P reports refinery shutdowns and longer shipping routes have cut global jet fuel supply by about 20% and reduced seaborne trade, which will take weeks to clear even if lanes stay open.
- Airlines are passing on costs through higher checked-bag fees at Delta, United, JetBlue and Southwest, while United and Latam say fuel bills have roughly doubled in recent weeks.
- Shippers and consumers face new add-ons, with Amazon’s 3.5% seller surcharge, a USPS 8% package fuel fee through at least January 17, 2027, and elevated FedEx fuel charges, as airfares in Argentina climbed about 16%.