Jet fuel costs are on the rise as tensions escalate in the Middle East, causing concern for airlines and travelers heading into the busy summer travel season.

In the United States, the Argus U. S. Jet Fuel Index, which tracks prices in major cities like Chicago, Houston, Los Angeles, and New York, reached $3. 95 per gallon on Thursday. Prior to the start of the conflict, prices had been averaging in the low-to-mid $2 range for several weeks.

The jet fuel market is especially susceptible to disruptions in supply due to lower inventories and the need for specialized storage tanks. This lack of flexibility can exacerbate price changes when supply chains are strained.

Furthermore, the jet fuel market has much less spot-market trading compared to other fuels, making price fluctuations more significant when supply is tight.

If these higher prices continue, it could have a ripple effect throughout the airline industry. This could impact budgets, route planning, and ultimately lead to increased ticket prices for passengers.

Airlines are already preparing for the peak summer travel season, and sustained increases in fuel prices could lead to schedule adjustments and potential fare increases in the coming weeks.