Airlines and shippers are scrambling to lock in fuel costs as Brent crude topped $80 a barrel following US-Iran tensions. Consumer hedging activity has picked up since the conflict began, with traders reporting increased call option volumes as jet fuel prices hit their highest levels since 2022.

Much of the hedging surge reflects concern over potential disruptions through the Strait of Hormuz, a vital oil-shipping channel. Airlines like Air New Zealand have restructured their hedges, moving from Brent-linked contracts to jet fuel swaps to better protect against refining margin volatility. The company's CFO noted ongoing uncertainty over oil prices and refining margins.

European carriers are more active in fuel hedging than their US counterparts, many of whom pulled back after heavy losses during the 2008 financial crisis. British Airways parent IAG SA recently raised its projected annual fuel bill to €7.4 billion from €7 billion in just two months. With geopolitical risks remaining high, airlines continue to navigate volatile fuel markets through strategic hedging programs.