The war in the Middle East could trigger the worst energy crisis in decades, International Energy Agency (IEA) Executive Director Fatih Birol warned on Monday, calling the situation “very severe.”
Speaking at the National Press Club in Canberra, Birol said the current disruption has already exceeded the combined impact of the two major oil shocks of the 1970s.
“During each of those crises, the world lost about five million barrels per day — 10 million combined,” he said. “Today, we have lost 11 million barrels per day — more than both shocks put together.”
He cautioned that the global economy faces a “major, major threat,” stressing that no country would be immune if the crisis worsens and calling for coordinated global action.
The warning comes amid escalating conflict in the Middle East, particularly involving Iran, which has disrupted oil production and key supply routes. Concerns are mounting over the security of the Strait of Hormuz — a critical passage for roughly 20% of global oil supplies — raising fears of prolonged disruptions.
The situation has been further aggravated by Israeli strikes on Iranian energy infrastructure, including a major gas field, pushing energy prices higher and heightening concerns over long-term global supply stability.
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