The head of the International Energy Agency has issued a stark warning that the energy crisis triggered by the war in Iran is as devastating as the 1970s oil shocks and the Ukraine conflict combined. Fatih Birol, the IEA’s executive director, made the alarming comparison as global energy markets continue to reel from the fallout of military operations in the region. His remarks underline the unprecedented scale of disruption now facing the world’s energy systems.
Birol delivered his assessment while speaking at the National Press Club of Australia in Canberra, noting that world leaders had initially failed to grasp the true depth of the crisis. The conflict, which began with bombings against Tehran on February 28, has caused daily oil losses of 11 million barrels and approximately 140 billion cubic metres of natural gas. These figures dwarf the losses seen during the 1973 and 1979 oil shocks, which together removed around 5 million barrels per day from global markets.
In response to the worsening situation, the IEA last week called for demand-side measures including expanded work-from-home arrangements, lower highway speed limits, and reduced air travel. The agency also authorized the release of 400 million barrels from strategic reserves, marking the largest emergency measure in its history. Birol confirmed that further releases remained possible depending on how market conditions evolve.
The closure of the Strait of Hormuz has emerged as a central concern, given that roughly 20 percent of global oil supply passes through the waterway. At least 40 energy assets across the Gulf region have been severely damaged, meaning supply cannot be quickly restored even if the conflict ends. US President Donald Trump issued a 48-hour ultimatum to Iran demanding the strait be reopened, warning of further destruction to Iranian energy infrastructure if the deadline was not met.
Birol stressed that opening the Hormuz strait remains the single most critical solution to the crisis. He noted that while strategic reserve releases would help ease market pressures, they were not a permanent fix. The IEA chief called for coordinated global efforts, warning that no country would be immune from the effects of a prolonged crisis.
