Fatih Birol, the head of the International Energy Agency, has warned the world cannot afford another week without meaningful progress on the global energy crisis triggered by the Iran war. The IEA chief, speaking in Canberra, said the crisis had already grown to the scale of the twin 1970s oil shocks and the Ukraine gas emergency combined — and was continuing to worsen with each passing day. He urged governments to treat the situation with the urgency it demands.
The conflict began with US and Israeli strikes on Iran on February 28 and has since led to the closure of the Strait of Hormuz and the severe damage of at least 40 Gulf energy assets. Daily oil losses have reached 11 million barrels, compared to 5 million during both 1970s crises combined, while gas losses of 140 billion cubic metres exceed the 75 billion removed by the Ukraine conflict. Birol described it simply as two oil crises and one gas crisis happening simultaneously.
The IEA authorized the largest emergency reserve release in its history — 400 million barrels of oil — on March 11, and called for demand-side policies including expanded remote working, lower speed limits, and reduced commercial aviation. Birol said further releases were under consideration and that the initial action represented only 20 percent of available stocks. He stressed, however, that reserves could only ease the crisis, not resolve it.
The Strait of Hormuz, through which about 20 percent of global oil supply passes, remains closed to commercial traffic, hitting Asia-Pacific nations hardest. Japan indicated willingness to contribute to minesweeping efforts if a ceasefire is agreed. Europe has also faced tightening diesel and jet fuel supplies, while increased North American output provides limited offsetting relief.
Trump’s 48-hour ultimatum to Iran to reopen the strait expired without result, and Tehran threatened retaliatory strikes on US and allied energy and water infrastructure. Birol met with Australian Prime Minister Anthony Albanese and urged all governments to resist domestic fuel hoarding. His final message was blunt: time is not on the world’s side, and each day of inaction deepens an already historic energy emergency that will ultimately hurt every nation on earth.
