Fatih Birol, the executive director of the International Energy Agency, has described the ongoing energy crisis stemming from the Iran war as more severe than any previous energy disruption in modern history. Speaking in Australia, Birol said the crisis combines the destructive force of two separate oil emergencies from the 1970s alongside the energy fallout caused by Russia’s invasion of Ukraine. The assessment has sent alarm signals through global energy and financial markets.
The war in Iran, which escalated following American and Israeli military strikes beginning on February 28, has resulted in the loss of 11 million barrels of oil per day from global supply. This is more than double the total oil removed during both the 1973 and 1979 oil crises combined, which amounted to around 5 million barrels daily. Additionally, roughly 140 billion cubic metres of natural gas have been removed from international markets, dwarfing the 75 billion cubic metres lost during the Ukraine conflict.
The IEA responded swiftly by authorizing the release of 400 million barrels of oil from member nations’ strategic reserves, the largest such emergency action in the agency’s history. Birol also pushed for demand-reduction measures including remote working, lower speed limits on motorways, and cuts to commercial air travel. These steps were designed to reduce pressure on already strained global energy supplies.
A central flashpoint in the crisis has been the Strait of Hormuz, through which approximately one-fifth of the world’s oil supply travels. Strikes on vessels navigating the strait have caused severe supply disruptions and widespread anxiety among energy-importing nations. The IEA chief warned that at least 40 energy facilities in the Gulf had been heavily damaged, making a swift recovery unlikely even after hostilities cease.
With Trump’s deadline to Iran expiring, the situation remains dangerously unresolved. Birol said the IEA was in active consultation with governments across Asia, Europe, and North America about further emergency oil releases. He emphasized that international cooperation, not just reserve releases, would be essential to navigate the deepening global energy emergency.
