SAS Cancels 1,000 Flights as Iran War Doubles Jet Fuel Prices

SAS, the joint flag carrier of Denmark, Norway, and Sweden, announced it would cancel 1,000 flights in April 2026 due to surging jet fuel prices driven by the ongoing US-Israeli war against Iran and the closure of the Strait of Hormuz. Norwegian Air, Scandinavia's second-largest airline and Europe's fourth-largest low-cost carrier, responded by adding 120 extra flights between March 27 and April 12, 2026, to absorb demand displaced by the SAS cuts. The aviation disruption is one of the most visible signs of a broader economic shock rippling through Europe as the Middle East conflict reshapes energy markets. Jet fuel prices have surged from approximately $85-$90 per barrel to between $150 and $200 per barrel following the escalation. Delta Air Lines separately reported that jet fuel costs added $400 million to its expenses in March alone, according to web search results. SAS chief executive Anko van der Werff leads the airline as it navigates what analysts describe as one of the most severe fuel cost environments in recent aviation history. The Strait of Hormuz, through which roughly 20% of global oil and LNG flows pass, remains largely closed.

The US-Israeli military operation against Iran, designated Operation Epic Fury, began on February 28, 2026, and resulted in the death of Supreme Leader Ali Khamenei in the initial strikes. Mojtaba Khamenei, his son, was appointed Supreme Leader on March 9, 2026. The conflict has severely disrupted Persian Gulf shipping lanes, with the Strait of Hormuz closure cutting off a critical artery for global energy supply. European airlines have faced repeated fuel-cost crises in recent decades, but the current price spike — from roughly $85-$90 to $150-$200 per barrel — represents one of the sharpest short-term surges on record according to source articles.

Jet fuel price impact of Iran conflict: Jet fuel price per barrel (before: $85–$90 (pre-conflict), after: $150–$200 (post-escalation))

LOT suspends Tel Aviv and Dubai routes indefinitely LOT Polish Airlines extended the suspension of its flights to and from Tel Aviv and Dubai, according to the Polish Press Agency. The Polish national carrier had already halted those routes following the outbreak of hostilities, and the extension reflects continued uncertainty over the security and cost environment in the region. European airlines more broadly have been cancelling hundreds of flights, according to RMF24, as record fuel prices make certain routes economically unviable. The closure of the Strait of Hormuz has not only driven up jet fuel costs but has also pushed European natural gas prices sharply higher, compounding the inflationary pressure on airlines and consumers alike. The conflict has prompted Gulf Arab states to reassess their diplomatic positions, with Iran seeking a review of its ties with Gulf neighbors and denying responsibility for attacks on Saudi oil facilities, according to web search results. Tehran has also accused the United Arab Emirates of allowing its territory to be used to launch strikes against Iran, an allegation the UAE has rejected. The cascading disruptions across aviation, energy, and diplomacy underscore how rapidly the conflict has reshaped conditions across multiple sectors simultaneously.

Polish drivers eye electric cars as pump prices climb In Poland, the surge in fuel prices has triggered fresh anxiety among consumers and prompted debate about whether high costs at petrol stations could accelerate a shift toward electric vehicles, according to reporting by auto.dziennik.pl and Parkiet. Poles are again confronting fears of sustained price increases, a concern that echoes earlier inflationary episodes tied to energy market disruptions. The Parkiet newspaper reported that the Iran conflict is being felt directly at Polish filling stations, with prices rising and consumer sentiment souring. The prospect of a structural shift toward electric vehicles has gained renewed attention, though analysts note that the upfront cost of EVs remains a barrier for many Polish households. The broader market reaction in Poland has included rising gas prices and increased inflation expectations, according to wGospodarce.pl. The conflict has effectively compressed a years-long energy transition debate into a matter of weeks, as consumers weigh immediate fuel costs against longer-term alternatives.

20 (percent) — share of global oil and LNG flows through Strait of Hormuz

Central banks rethink rate paths as war reshapes inflation outlook Central banks across Europe and beyond are reassessing their interest rate strategies in response to the economic disruption caused by the Iran conflict, according to Interia.pl Biznes. The sharp rise in energy prices has injected new inflationary pressure into economies that had only recently begun to see price growth moderate, complicating decisions on whether to cut, hold, or raise rates. The conflict has effectively altered the macroeconomic calculus that policymakers had been working from at the start of 2026. Rising gas prices in Europe, driven by the Strait of Hormuz closure and its effect on LNG supply chains, are feeding through to household energy bills and industrial costs. The ŚwiatOZE.pl portal reported that the Persian Gulf conflict is pushing gas price forecasts for Europe and Poland higher, with the duration of the Strait closure remaining the key variable in any projection. No confirmed timeline for the reopening of the waterway was available as of March 18, 2026. The combination of aviation disruptions, fuel price spikes, and central bank uncertainty has produced what multiple Polish and European outlets described as a broad and rapid market reaction to a conflict that began less than three weeks ago.