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. Report Al Jazeera
“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.
Birol warned that the crisis poses a “major threat” to the global economy and said its severity had not been fully recognized by policymakers.
To mitigate the situation, the Paris-based IEA has proposed coordinated measures, including the potential release of up to 400 million barrels of oil from emergency reserves. Birol said further releases remain under discussion, but emphasized that the most critical step is reopening the Strait of Hormuz, through which about one-fifth of global oil and LNG supplies normally pass.
Global oil prices have already surged by more than 50 percent since the conflict began on February 28, following strikes involving the United States and Israel and Iran’s subsequent actions in the region.
Tensions remain high, with Donald Trump issuing an ultimatum to Iran to reopen the waterway or face further escalation, while Tehran has warned of broader attacks on regional energy and infrastructure if military pressure continues.
Experts caution that unless the situation de-escalates quickly, the crisis could have prolonged and far-reaching consequences for global energy security and economic stability.
