The world is affected by an energy crisis more severe than the shocks of the 70s and the war in Ukraine, the head of the IEA warns
The Executive Director of the International Energy Agency (IEA), Fatih Birol, warns that the current energy crisis caused by the conflict in Iran is more severe than the oil shocks of the 1970s and their cumulative impact with that of the war in Ukraine.
Fatih Birol Photo: Profimedia
According to him, the world is facing a loss of about 11 million barrels of oil per day, an unprecedented level compared to the crises of 1973 and 1979.
“The situation is very serious”said Fatih Birol, underlining the scale of disruptions in global energy markets, according to ABC.
He explained that currently the scale of the deficit significantly exceeds historical shocks: “At the time, in each of the crises, the world was losing about 5 million barrels per day. We are currently losing 11 million barrels a day, so more than two major oil shocks put together.”
The conflict in the Middle East has also affected the region's energy infrastructure, with dozens of targets reported damaged or destroyed, complicating the outlook for market stabilization.
A critical point remains the Strait of Hormuz, a route through which about 20% of global oil trade transits. Birol warned that disruption to this area has direct effects on global supply.
“It will take some time to get back to the normal times we had before the war started,” the head of the AIE also stated, stressing that the effects of the conflict will continue even after a possible cessation of hostilities.
In this context, the agency is analyzing the possibility of further interventions in the market, including the additional release of strategic oil reserves, depending on the evolution of the situation.
“If necessary, of course we will do it, but we will analyze the conditions, evaluate the market and talk with the member countries”said Birol.
However, he emphasized that such measures only serve to temporarily improve the situation: “A release of reserves will help calm the markets, but that is not the solution. It will only help reduce the impact on the economy.”
