The UK government announced that imports of diesel and jet fuel refined from Russian crude oil in third countries will be fully banned from January 1, 2027, according to Reuters.
The decision follows a government move last month to delay the implementation of the ban amid concerns over supply disruptions caused by the US-Israeli Strike on Iran. It noted that existing sanctions were not being lifted, but new sanctions were being phased in.
The Department for Business and Trade said the temporary license will be reviewed every two weeks and could be withdrawn earlier should market conditions improve.
The UK currently operates four oil refineries with a combined capacity of around 1 million barrels per day (mmbbl/d), down from nine refineries in 2000 following the recent closure of the Lindsey refinery.
However, the country’s petroleum product demand reached 1.35 mmbbl/d in March, according to the International Energy Agency (IEA), with diesel and jet fuel accounting for 61% of total consumption.
Global fuel markets have faced mounting pressure since the outbreak of the Iran conflict on February 28. Disruptions to trade routes through the Strait of Hormuz, which previously handled approximately 400,000 bbl/d of jet fuel exports, pushed European jet fuel prices above $200 per barrel in April, a record high.
To offset reduced supplies from Gulf producers, Europe has increased imports of jet fuel from alternative sources, particularly Nigeria.
Meanwhile, the International Air Transport Association (IATA) has revised its 2026 net profit forecast to $23 billion, down from a previous estimate of approximately $41 billion and below the $45 billion recorded in 2025.
IATA, which represents more than 370 airlines accounting for roughly 85% of global air traffic, projects the industry’s fuel bill will surge to around $350 billion in 2026, compared with $252 billion in 2025, with fuel expected to represent nearly one-third of airlines’ operating costs.
