IEA Chief Says World Facing Worst Energy Crisis in History
"We are facing the biggest energy security threat in history," IEA Executive Director Fatih Birol said in an interview with media at the CONVERGE LIVE event in Singapore.
Birol said global markets have already absorbed the shock of losing 13 million barrels per day in oil supply, compounding severe disruptions across other critical energy commodities. He reiterated prior warnings that the ongoing conflict and the strait's continued closure risk triggering the largest energy crisis ever recorded, pointing to the waterway's irreplaceable role in the movement of global oil.
Before hostilities broke out, approximately 20 million barrels of oil and petroleum products transited the Strait of Hormuz daily. That flow has now effectively ground to a halt. Birol described the situation as a "double-blockade," with neither Iran nor the US permitting vessels to enter or exit the channel.
The IEA has previously designated the Strait of Hormuz as one of the planet's most consequential oil transit chokepoints, cautioning that its closure would drag on global economic growth, stoke inflation, and potentially necessitate energy rationing.
Europe faces particularly acute exposure, with the continent's jet fuel supply chain now severely compromised. "Europe gets about 75% of its jet fuel from refineries in the Middle East and this is basically now zero," Birol said, noting that European governments are urgently seeking replacement supplies from the US and Nigeria. He warned that if alternative imports are not secured swiftly, the region could face serious difficulties — and governments may be forced to weigh restrictions on air travel should the crisis persist. "I really hope, first of all, that the strait is opened and refinery exports start from there," Birol said.
In a coordinated response, the IEA's 32 member nations agreed in March to release 400 million barrels from emergency reserves to cushion the blow of the supply shock. However, Birol cautioned earlier this month that any second drawdown of strategic stocks would offer only temporary relief rather than address the root cause of the crisis.
"The cure is opening up the Strait of Hormuz," he said, while calling on governments to accelerate efforts to reduce vulnerability through diversified energy sources — including nuclear power — and efficiency-driven technologies such as electric vehicles.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
