The world is facing an energy crisis more severe than the oil shocks of the 1970s and the fallout from the Russia-Ukraine War combined, according to Fatih Birol, head of the International Energy Agency.
Speaking at the National Press Club in Canberra, Birol said the crisis triggered by the US-Israel conflict with Iran has created an unprecedented global energy shock.
“This crisis is effectively two oil crises and one gas crisis combined,” he said, highlighting the scale of disruption to global supply.
According to the IEA, the effective closure of the Strait of Hormuz—a key route for global energy shipments—along with attacks on energy infrastructure, has cut global oil supplies by around 11 million barrels per day, more than double the shortages experienced during the 1970s crises.
Liquefied natural gas (LNG) supplies have also been severely affected, falling by approximately 140 billion cubic meters, compared to a 75 BCM drop following the Ukraine war.
Additionally, at least 40 energy facilities across nine countries have been significantly damaged in the ongoing conflict.
