Jet Fuel Crisis Looms Over Southeast Asia Amid Middle East Conflict

The escalating conflict in the Middle East has led to a jet fuel crisis in Southeast Asia, with the Philippines and Vietnam facing significant flight disruptions. Philippine President Ferdinand Marcos Jr. has warned of potential flight cancellations due to refueling issues, while Vietnam Airlines plans to cut numerous domestic flights. The crisis is exacerbated by rising fuel prices and export restrictions from key suppliers. As both nations scramble for alternative fuel sources, the future of air travel in the region remains uncertain, raising concerns about tourism and economic recovery. Read on to discover the full impact of this crisis.

By Narendra Chaudhary Mar 24, 2026, 16:07 IST

Impact of Middle East Conflict on Jet Fuel Supply

The ongoing conflict in the Middle East has sparked a significant jet fuel crisis, posing a serious threat to flight operations and domestic routes throughout Southeast Asia. The Philippines has indicated that halting flights is a 'real possibility,' while Vietnam Airlines is already preparing to cancel numerous weekly flights.

Philippine President Ferdinand Marcos Jr. issued a grave warning on Tuesday, noting that several nations have denied refueling services to Philippine aircraft, compelling airlines to stock enough fuel for round trips. He stated, 'Long haul is going to be a much more serious problem,' emphasizing the risk of grounding planes.

As a nation heavily dependent on imported energy, particularly from the Middle East, the Philippines is among the most affected in the region. The ongoing conflict, particularly involving Iran, has resulted in refusals of fuel supply at international airports and a sharp increase in fuel prices.

In Vietnam, the Civil Aviation Authority has confirmed that Vietnam Airlines will cancel approximately 23 domestic flights weekly starting in April, focusing on routes essential for connectivity, trade, tourism, and necessary travel. Vietnam primarily imports its jet fuel, with significant amounts sourced from China and Thailand, both of which have now imposed export restrictions due to the crisis.

Other airlines, such as VietJet Air and Bamboo Airways, are also assessing their flight schedules and preparing for potential reductions. The crisis is rooted in broader disruptions to global energy supply chains, including damage to infrastructure, limited flows through the Strait of Hormuz, and export limitations by major Asian refiners aiming to secure domestic supplies.

With jet fuel prices soaring, airlines are feeling the financial strain, prompting them to contemplate fare increases, flight reductions, and contingency measures. The Philippines faces the greatest risk for long-haul international routes, while Vietnam is beginning to cut back on less critical domestic services. Airports in Vietnam are also making arrangements for additional parking space in anticipation of more grounded aircraft.

Industry analysts caution that if the fuel shortage continues, other Southeast Asian countries may also experience similar disruptions, which could adversely affect tourism, business travel, and regional connectivity at a crucial time for economic recovery. Both governments are actively seeking alternative fuel sources, but the future remains uncertain. Without a rapid resolution to the conflict in the Middle East or new supply agreements, air travel in the region may encounter significant challenges in the coming weeks.