Fatih Birol, the executive director of the International Energy Agency, has called on world leaders to unite in addressing what he described as the most damaging energy crisis in modern history. Speaking at a press event in Canberra, Australia, Birol said the Iran war has created a perfect storm of oil and gas supply disruptions that individually would each represent a major crisis. Together, he warned, they posed a catastrophic threat to the global economy.
The crisis began escalating after American and Israeli military strikes on Iran commenced on February 28, followed by the closure of the Strait of Hormuz to commercial shipping. Birol said the true depth of the problem was not immediately recognized by political leaders around the world, requiring the IEA to step in with emergency guidance and historic reserve releases. The agency mobilized 400 million barrels of oil from strategic stocks, the largest single emergency action it has ever undertaken.
Currently, 11 million barrels of oil per day are missing from global markets as a result of the conflict, alongside 140 billion cubic metres of natural gas. These losses vastly exceed those caused by the 1973 and 1979 oil crises, which together removed around 5 million barrels daily. The gas shortfall also surpasses the 75 billion cubic metres lost when Russia cut supplies following its 2022 invasion of Ukraine.
The IEA chief noted that the damage extends beyond oil and gas to include disruptions in the supply chains for petrochemicals, fertilizers, sulfur, and helium. Gulf energy infrastructure has been badly damaged, with at least 40 major facilities suffering severe harm. Birol made clear that even if a peace agreement were reached tomorrow, supply restoration would take considerable time.
Japan has expressed willingness to contribute minesweeping naval assets if a ceasefire is agreed, reflecting growing international anxiety about the strait’s closure. Birol confirmed that consultations with governments in Europe, Asia, and North America about further emergency reserve releases are ongoing. His overriding message was that the world needs coordinated, decisive action — and that no nation would be immune from the consequences of inaction.