Exclusive: Korea’s jet fuel exports to U.S. in holding pattern in wake of Iran war

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Exclusive: Korea’s jet fuel exports to U.S. in holding pattern in wake of Iran war

Published: 07 Apr. 2026, 19:00 Updated: 08 Apr. 2026, 15:06

SARAH CHEA
[email protected]

Audio report: written by reporters, read by AI

From left, U.S. President Donald Trump delivers a national address on the war against Iran in April in Washington; An aircraft is being refueled. [AFP/YONHAP/GETTY IMAGES]

Korea has virtually suspended its jet fuel exports amid crude oil shortages, a move set to hit the United States — which relies on Korean fuel for nearly 70 percent of its imports — the hardest.

Korean oil refiners have sharply scaled back jet fuel production, diverting much of the adjusted volume to domestic demand.

As the world’s top jet fuel exporter, Korea is a critical lifeline for countries like the United States and Australia, leaving them highly exposed to any disruption in Korean shipments.

Seoul has yet to impose formal restrictions on jet fuel exports, but could move in that direction if conditions deteriorate, as it did with naphtha.

Jet fuel export freeze
Disruptions in crude supply have pushed jet fuel production down the priority list, with the limited volume largely diverted to meet domestic airline demand.

“Crude supply disruptions have forced adjustments across the crude distillation units, and jet fuel production has naturally declined," said a source at GS Caltex, one of Korea’s major refiners. "The structure prioritizes domestic needs first, with any remaining volume earmarked for export.

“But even that leaves virtually nothing available for export.”

With exportable volumes constrained, shipments previously promised for long-term supply contracts are being deferred.

“Some of April’s jet fuel exports are being deferred, including through rollover supply,” said a source at HD Hyundai Oilbank, another major refiner.

SK Energy is also directing nearly all spot volumes toward domestic consumption.

In fact, energy analytics firm Kpler said Korea’s jet fuel exports in March fell to roughly half of last year’s levels, and predicted the slowdown could deepen.

A halt in Korea’s aviation fuel exports would have significant global repercussions, as Korea remains the No. 1 jet fuel exporter in the world, producing over 150 million barrels as of 2024. Of them, 90 million barrels were shipped overseas, accounting for 30 percent of the global market.

Of the exports, 41 percent were shipped to the United States, totaling 36.5 million barrels, while Australia ranked second with 14.06 million barrels, according to the Korea Petroleum Association as of 2024.

Still, the Korean government has taken a cautious stance on imposing restrictions on jet fuel exports.

“Restrictions on petroleum product exports must be approached with great caution,” said Yang Ki-wook, director-general of the Office of Industry, Trade and Resource Security at the Ministry of Trade, Industry and Resources during a press briefing on Tuesday.

“While the situation may change in the future, at present we are not considering any export limitations.”

The departure hall at Terminal 1 of the Incheon International Airport remains nearly empty after plane tickets have risen due to the oil supply disruptions on April 1. [NEWS1]

U.S. overly dependent on Korea
The United States finds itself most vulnerable as nearly 70 percent of U.S. jet fuel imports — up to 85 percent in certain regions — depend on Korean jet fuel.

This reliance may partly explain the Donald Trump administration’s fixation on keeping the Strait of Hormuz “open,” despite Middle Eastern crude accounting for only 7.9 percent of U.S. oil imports last year.

Most of Korea’s jet fuel is derived from Middle Eastern crude, meaning that a prolonged closure of the Strait of Hormuz could disrupt U.S. jet fuel supplies. Korea imports roughly 70 percent of its crude oil from the Middle East, and 99 percent of that passes through the Strait of Hormuz.

As of 2025, 68.6 percent of U.S. jet fuel imports came from Korea, according to the U.S. Energy Information Administration. In West Coast states, including California, Washington and Hawaii, it rose to 85 percent.

Korean Air planes are seen at Incheon International Airport on April 1. [NEWS1]

Jet fuel requires advanced refining, as even trace amounts of water can be catastrophic for aircraft operating in low-pressure, low-temperature environments. Despite being a non-oil-producing nation, Korea has mastered the production of high-grade jet fuel, leveraging its sophisticated refineries and large-scale facilities.

Korea ranks among the world’s top five in refining capacity, and its single-site refineries operated by SK Energy, GS Caltex and S-Oil are among the largest globally.

“Korea could potentially leverage the dependence of oil-producing countries like the United States and Australia on certain Korean petroleum products to strengthen its negotiating position for crude oil supplies,” said Ryou Kwang-ho, a senior researcher specializing in the Middle East and energy security at the Korea Institute for International Economic Policy.

Competition among airlines for available jet fuel is also intensifying.

“There have been numerous requests from domestic carriers to prioritize them when selling jet fuel and defer allocations for foreign airlines, even those that run routes in Korea,” said a source in the airline industry.

China is reportedly extending its refined fuel export restrictions, though it is considering limited exceptions for certain countries.

Vietnamese authorities have warned domestic airlines to prepare for possible flight reductions following export halts by China and Thailand. Vietnam relies on imports for over two-thirds of its jet fuel, sourcing roughly 60 percent from China and Thailand.

BY SARAH CHEA [[email protected]]