IEA warns of worst energy crisis in decades

The Director of the International Energy Agency, Fatih Birol, warned on Monday that the world may face one of the most dangerous energy crises in decades amid the escalating war in the Middle East and its direct impact on global oil supplies.

Speaking at the National Press Club in Canberra, Birol said the current situation is “very serious,” noting that markets have so far lost about 11 million barrels per day of supply, a figure exceeding the combined losses the world experienced during the oil crises of the 1970s.

He explained that “the world lost about 5 million barrels per day in each crisis at that time, totaling around 10 million barrels per day,” reflecting the unprecedented scale of the current disruption.

He also pointed out that the war has caused severe damage to energy infrastructure, stressing that at least 40 energy facilities have been heavily or very heavily damaged in nine countries across the region.

The warning comes amid growing fears of global economic repercussions, particularly with threats to close the Strait of Hormuz, one of the world’s most vital oil transit routes, which could lead to major market disruptions and sharp price increases.

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ANHA