Fatih Birol described the crisis as a major threat to the global economy, citing significant reductions in oil and gas supplies.
The International Energy Agency's Executive Director Fatih Birol stated that the world is experiencing an energy crisis worse than the 1973 and 1979 oil shocks combined with the gas shortages from Russia's 2022 invasion of Ukraine. This assessment was made during a media event in Australia on March 23, 2026, amid the ongoing US-Israel war on Iran.
Birol attributed the crisis to the effective closure of the Strait of Hormuz and attacks on energy facilities, which have reduced global oil supplies by about 11 million barrels per day. This figure exceeds the shortfalls from the 1970s crises.
Liquefied natural gas supplies have also been severely affected, with reductions of about 140 billion cubic meters, compared to a 75 billion cubic meters shortfall after Ukraine's invasion. At least 40 energy facilities across nine countries have been damaged in the conflict.
IEA's Response to the Crisis
Birol highlighted that the global economy faces a major threat and urged for swift resolution. The IEA has proposed measures for governments to reduce energy consumption, including promoting remote working, carpooling, and lowering speed limits on motorways.
The organization announced plans to coordinate the release of 400 million barrels of oil from emergency stockpiles. Birol noted he is consulting with countries about further releases if needed, emphasizing that unblocking the Strait of Hormuz is the most critical solution.
Oil prices have surged more than 50 percent since the war began with US-Israeli strikes on February 28, 2026. US President Donald Trump issued a 48-hour ultimatum to Iran to unblock the strait, with the deadline set to expire on March 23, 2026, in the United States.
Iran has threatened to fully close the waterway and launch attacks on regional energy infrastructure if struck. Birol expressed concern that the crisis's scale was not fully understood earlier, prompting his public statements.
