Dwindling fuel stocks and rising prices are prompting countries around the world to burn coal, ration fuel, shorten work weeks and tell citizens to stay home, The Guardian reports.
Fossil fuel reserves have dwindled since the outbreak of war against Iran, which closed the Strait of Hormuz, a crucial shipping route for seaborne oil and gas.
The deficit led to emergency measures as governments tried to stem rising costs that had thrown economies into chaos.
The International Energy Agency (IEA), whose member states tried to calm markets by releasing 400 million barrels of oil from strategic reserves last month, called for measures such as reducing the number of flights and driving speeds.
However, the measures varied from country to country and from continent to continent, depending on the degree of dependence on supplies that normally transit the Strait of Hormuz.
EU countries have lowered fuel excise duties and imposed price caps
The EU has called for a faster transition to a clean economy powered mainly by domestic renewables, although some member states are slowing the process. Last week, Italy delayed its plan to phase out coal by more than a decade, while German Chancellor Friedrich Merz proposed keeping coal-fired plants longer and called for faster construction of gas-fired plants.
Several EU governments have announced subsidies and excise duty cuts to protect consumers from price increases.
Germany, Europe's biggest economy, introduced a ban on gas stations on Wednesday, which now allows them to raise prices only once a day.
Explaining the measure passed by parliament on March 26 but which only came into effect yesterday, the German government said it was aimed at eliminating the “missile and wedge effect”.
Merz's government used the term to denounce situations where “fuel prices often rose very quickly in the past when crude oil prices rose, but fell slowly when prices fell.”
Also on Wednesday, the European Commission promised to impose lower taxes on electricity than on fossil fuels, which would reduce reliance on imports and speed up the transition away from petrol cars and gas plants.
EU Energy Commissioner Dan Jørgensen on Tuesday urged member states to save energy in line with the IEA's recommendations. Most European countries have been reluctant to impose tough measures to curb demand, but Slovenia has begun rationing fuel at the pump and Lithuania has halved domestic train ticket prices for the next two months.
The United States is counting on increasing domestic oil and gas production
The US, which started the war by bombing Iran alongside Israel in late February, has threatened further strikes on Iran's oil infrastructure, which could prolong the war and further increase fuel prices.
President Donald Trump lashed out at allies who did not join the campaign – including Britain and France – telling them on Tuesday to buy from the US first and then “get their own oil” from the Gulf.
The federal government has not taken steps to increase subsidies or support households struggling to pay their bills, but has continued its so-called “drill, baby, drill” policy of expanding fossil fuel production while blocking renewable energy projects.
Last week, the Trump administration announced it would pay French company TotalEnergies $1 billion in public money to block plans to build wind farms on the US East Coast and instead direct investment to oil and gas.
What's happening in the UK, Australia, New Zealand and Canada
Britain has encouraged people to stay calm as fuel prices rise, limiting financial support for those who use liquid fuel to heat their homes.
Finance Minister Rachel Reeves is considering plans to allocate extra funds administered by local councils to help vulnerable people in times of financial crisis, but has ruled out universal support during the latest energy crisis.
The IEA warned governments against providing blanket subsidies in response to the crisis and recommended that they direct support to those most in need. New Zealand has announced weekly payments to almost 150,000 hardest-hit middle-class families as part of a fuel relief package.
Australia has cut fuel excise duty by 50% for three months and launched a national energy security plan. At the current level of danger, motorists are advised to “only buy the fuel they need”.
The Labor government led by Anthony Albanese says voluntary elections will help avoid the impact of higher prices. Canada, meanwhile, has refrained from intervening to offset rising prices as it is itself a major energy producer.
The crisis in the Middle East has hit Asian countries the hardest
Coal is coming back to Asia, a region heavily affected by the energy crisis. India has ordered coal plants to run at full capacity and avoid planned shutdowns, while Japan is allowing less efficient coal plants to re-enter the electricity market.
South Korea has lifted limits on coal-fired electricity and announced a delay in its planned phase-out. Bangladesh, Thailand and the Philippines are also increasing energy production from the most polluting fossil fuel.
China, the world's second largest economy, is less exposed to the crisis than its neighbors. In recent years, it has greatly increased its energy production – from fossil, nuclear and renewable sources – and built up a vast strategic oil reserve. State refiners avoided imports of Iranian crude for fear of being cut off from international markets, but independent refiners continued to process it for domestic consumption.
Countries in South and Southeast Asia have taken the most extensive measures to reduce energy demand.
Sri Lanka introduced fuel rationing and the four-day work week. Vietnam urged employers to allow working from home. News anchors in Thailand took off their jackets live to reinforce the government's message, which asked people to use less air conditioning and officials to wear short-sleeved shirts without ties.
The Thai government has also ordered air conditioners in government offices to be set to 26–27°C and has joined other countries in the region in calls to drive less, use public transport more and promote ridesharing.
Emergency measures in Africa too
Most African countries are net importers of refined petroleum products, and the high share of farmers makes them particularly vulnerable to rising fertilizer prices, hit by rising energy costs and a shortfall in Gulf exports.
Several countries introduced emergency measures to deal with the shock. On Tuesday, South Africa cut its fuel tax for a month. Tanzania asked the energy ministry last month to strengthen strategic fuel reserves and has since set a cap on petrol prices in Dar es Salaam.
Ethiopia has introduced a special fuel subsidy and Zimbabwe is planning to increase the blending of fuel with ethanol. South Sudan has begun power rationing in the capital Juba, while Mauritius has limited grid electricity for non-essential use.
The closure of the Strait of Hormuz is felt as far as South America
Across South America, with a long tradition of state-subsidized fuel, right-wing governments have largely resisted calls to limit price rises.
José Antonio Kast, Chile's new president, raised fuel prices weeks after taking office to bring them into line with global prices. The government has announced measures to reduce the impact, such as freezing public transport fares for the rest of the year.
Argentina's government on Wednesday delayed a planned increase in taxes on liquid fuels and carbon dioxide. The decision came days after the administration of Javier Milei, a president who denies climate change, said it would allow local firms to voluntarily blend up to 15 percent ethanol in gasoline.
Brazil, meanwhile, is partially protected from price shocks thanks to a large car fleet that can run on any combination of ethanol and gasoline. Drivers can fuel up with ethanol from locally grown sugar cane instead of relying on imported fossil fuel.
