IEA Chief Warns Hormuz Crisis Could Trigger Global Energy Shock
Speaking in an interview with CNBC at an event in Singapore, Birol said the global energy system is facing extreme pressure, stating that “we are facing the biggest energy security threat in history.” He pointed to major losses in global oil supply and wider disruptions affecting key energy commodities.
He said the market has already lost around 13 million barrels per day in supply and stressed that the situation is being driven by instability in a critical maritime route for global energy transport.
Birol also highlighted the strategic importance of the Strait of Hormuz, through which, prior to the crisis, roughly 20 million barrels of oil and petroleum products passed daily. He described the current situation as a “double-blockade,” saying movement through the waterway has been heavily restricted amid ongoing tensions.
The IEA has previously identified the Strait as one of the world’s most important energy chokepoints, warning that prolonged disruption could slow global economic growth, increase inflationary pressure, and in severe cases force countries to ration energy use.
Birol also raised concerns about downstream effects, particularly in Europe’s fuel supply. He noted that the region has historically depended heavily on Middle Eastern refineries, saying that “Europe gets about 75% of its jet fuel from refineries in the Middle East and this is basically now zero.” He added that European states are seeking alternative supplies, including from the United States and Nigeria, to compensate for the shortfall.
He warned that without securing new import sources, Europe could face significant difficulties, and suggested that governments may need to consider restricting air travel if supply pressures continue.
The IEA has also responded to the wider crisis by agreeing to release 400 million barrels of oil from emergency reserves in an effort to stabilize global markets and cushion the impact of the supply disruption.
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