The ongoing conflict in the Middle East could push the world into its most severe energy crisis in decades, Fatih Birol, Executive Director of the International Energy Agency, has warned.
Speaking at the National Press Club in Canberra, Birol described the situation as “very severe,” noting that the scale of disruption has already surpassed the combined impact of the oil shocks of the 1970s.
He said global oil supply losses have reached 11 million barrels per day—exceeding the roughly 10 million barrels lost during the two major oil crises of that decade.
Birol cautioned that the global economy faces a “major, major threat,” stressing that no country would be immune if the crisis continues to escalate. He called for coordinated international action and expressed hope for a swift resolution.
The warning comes amid escalating conflict involving Iran, which has disrupted key oil production and supply routes across the region.
Tensions have also raised concerns over the security of the Strait of Hormuz, a critical chokepoint through which around 20 percent of global oil supplies pass, heightening fears of prolonged disruptions.
The conflict has further intensified following Israeli strikes on Iranian energy infrastructure, including a major gas field, driving up global energy prices and increasing concerns among governments and international institutions over the stability of energy markets.
