Airfares have surged by nearly 25% due to the ongoing Middle East conflict, with economy tickets now priced almost a quarter higher than last year, according to new research.

A report by consultancy agency Teneo says the Iran War has forced airlines to take longer routes due to restricted airspace, driving up fuel use and costs. At the same time, disruption to oil supplies has pushed jet fuel prices higher, The Caspian Post reports, citing foreign media.

Fuel costs have jumped from around $85-$90 per barrel to as much as $150-$200 in the last couple of weeks - a major blow for airlines, where fuel can make up as much as 25% of operating expenses.

The conflict has also knocked out capacity on key long-haul routes usually served by Gulf carriers, leaving fewer seats available overall. While some rival airlines have stepped in to boost services, it hasn’t been enough to plug the gap in the market.

Passengers travelling between Europe and East Asia have been hit hardest. Prices for a London to Melbourne flight in June are up 76% compared to last year, while fares from Hong Kong to London have risen by 72%.

Meanwhile, airlines are warning things could get worse. UK airline carriers say they may be forced to cut flights and hike fares further if disruption continues, particularly due to the closure of the Strait of Hormuz - a crucial route for global oil supplies.