00:00The immediate concern is around supply in Asia, followed by supply in Europe.
00:05I don't think Europe is in the same situation as Asia quite yet.
00:09About 80% of jet fuel for Asia comes through the Strait of Hormuz, which has been closed.
00:15Good news in the past hour that there is a temporary ceasefire
00:18and that oil will start flowing through the Strait of Hormuz again.
00:23So hopefully that will provide some short-term relief,
00:25and we've seen that in the price of crude oil, which has fallen significantly in the past hour or so.
00:31So it's a challenging situation.
00:34But the thing you've got to remember is fuel, in effect, is a variable cost.
00:38So the fact that airlines will cut capacity can be for two reasons.
00:44One, to reduce their cost exposure to oil,
00:47and secondly, to mitigate against the potential shortage of jet fuel supply.
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