California Jet Fuel Reserves Under Pressure as Strait of Hormuz Closure Squeezes Global Oil Supply

The closure of the Strait of Hormuz has squeezed global oil supply, putting pressure on California’s jet fuel reserves.

California’s jet fuel stockpile has dropped more than 25% to two-year lows as war disrupts global oil supplies, threatening increased airfares and potential World Cup travel complications in June. Isolated from the national pipeline network, California is uniquely vulnerable to fuel shortages, and budget carriers like Spirit Airlines face potential bankruptcy if costs don’t stabilize soon.

The state — which refines much of its own fuel in El Segundo and elsewhere but still relies on crude oil imports — has seen its jet fuel stock decline by more than 25% from last year’s peak to a level not seen since 2023, according to data from the California Energy Commission. The supply is shrinking as a global shortage is already affecting travelers’ summer plans with canceled flights and higher fares.

Impact on Entertainment Travel and Events

It could even affect plans for people coming to Los Angeles for the 2026 World Cup, which starts in June, said Mike Duignan, a hospitality expert and professor at Paris 1 Panthéon-Sorbonne University. “People don’t know exactly how this is going to escalate,” he said. “There’s a huge black cloud over the sea for the World Cup and the travel slump that we’re seeing is all linked to this oil shortage.”

Industry Response and Economic Concerns

As fuel supplies shrink, flight prices are rising. Airlines are adding baggage surcharges to cover fuel costs. Several routes leaving from smaller California hubs, including Sacramento and Burbank, have already been canceled. Air Canada has suspended flights for this summer, cutting routes from JFK to Toronto and Montreal. “Jet fuel prices have doubled since the start of the Iran conflict, affecting some lower profitability routes and flights which now are no longer economically feasible,” the airline said in a statement last week.

Refinery Closures Exacerbate Supply Issues

California’s refinery closures near Los Angeles and San Francisco are occurring just as the Iran war limits global supplies. The Phillips 66 Los Angeles refinery and the April closure of Valero Energy’s Benicia refinery near San Francisco combined for nearly 20% of California’s oil-refining capacity. Valero is also weighing the future of its Wilmington refinery near Los Angeles.

Broader Implications for West Coast

Europe is facing more widespread fuel shortages heading into the summer as the war in the Middle East drags on, but shortfalls—especially for jet fuel—will soon spread to California and the broader West Coast as the global energy supply shock ripples across the world. California must import a lot of its oil, gasoline, diesel, and jet fuel from Asia—a region that is itself currently struggling with shortages because of its reliance on Middle Eastern supplies.

Outlook and Expert Warning

“If we don’t have some concrete peace deal here in the next three weeks, then I’m really nervous for the West Coast this summer in terms of jet fuel,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “That’s not going to be great for California’s economy.”