Fatih Birol, the executive director of the International Energy Agency, has warned that the global energy crisis triggered by the Iran war has grown to a scale that no country can afford to ignore. Speaking in Canberra, the IEA chief said the combination of oil and gas losses from the conflict equals the destructive power of the 1970s twin oil shocks and the Ukraine gas crisis rolled into one. He called for urgent international cooperation to prevent the crisis from causing lasting economic damage.
The conflict began when the United States and Israel launched strikes on Iran on February 28, setting off a chain of events that led to the closure of the strategically vital Strait of Hormuz. That waterway carries approximately 20 percent of global oil supply, and its closure has triggered shortages and anxiety in energy markets around the world. At least 40 energy assets across the Gulf region have been severely damaged, making rapid supply restoration almost impossible.
Daily oil losses from the conflict stand at 11 million barrels, while natural gas losses total 140 billion cubic metres. By comparison, the twin oil crises of the 1970s removed only about 5 million barrels per day in total, and the Ukraine conflict cost global gas markets 75 billion cubic metres. Birol called it, plainly, two oil crises and one gas crisis happening simultaneously.
The IEA responded by releasing 400 million barrels of oil from strategic reserves — the largest emergency action in its history. Birol also pushed governments to implement demand-side measures such as working-from-home policies, lower speed limits, and reduced air travel. He confirmed that further reserve releases are being considered, noting the first deployment used only 20 percent of available stocks.
Asia-Pacific nations, including Japan, South Korea, and Australia, have been among the hardest hit by the closure of the Hormuz strait. Japan signaled it could deploy its navy for minesweeping if a ceasefire were reached, highlighting the growing military dimension of the energy crisis. Birol’s message to world leaders was clear: this crisis demands collective action, and delay will only deepen the economic pain.
