Energy Crisis Worsens to Pre-1970s Levels, Says International Energy Agency Head

IEA Chief Warns of Global Energy Crisis

The International Energy Agency (IEA) has issued a warning about the severity of the current global energy crisis, which is being exacerbated by the ongoing conflict in Iran. Fatih Birol, IEA Executive Director, stated that the situation is comparable to the twin oil shocks of the 1970s and the aftermath of Russia’s invasion of Ukraine.

According to Birol, the effective closure of the Strait of Hormuz and attacks on energy facilities have reduced global oil supplies by approximately 11 million barrels per day. This represents a significant increase over the combined shortfalls experienced during the 1970s’ crises. Additionally, liquefied natural gas (LNG) supplies have been reduced by about 140 billion cubic meters.

At least 40 energy facilities across nine countries have also been severely damaged in the conflict. Birol emphasized that the global economy is facing a major threat and urged for swift resolution of the issue. He expressed concern that the scale of the crisis had not been fully understood, prompting him to speak publicly about the situation.

The IEA has proposed measures to reduce energy consumption, including facilitating remote working and carpooling, and lowering speed limits on motorways. Birol is in consultation with countries regarding releasing more strategic oil reserves if needed. However, he identified unblocking the Strait of Hormuz as the single most important solution to the crisis.

US President Donald Trump has issued an ultimatum to Iran, requiring it to unblock the strait or face destruction of its power plants. Iran has threatened to completely close the waterway and launch attacks on energy and water infrastructure across the region if the US strikes its power plants.

Source: Al Jazeera