This work by Middle East Monitor is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
The conflict involving Iran has triggered the most severe energy security crisis the world has ever seen, warned a top international energy official, Anadolu reports.
Speaking to The Financial Times on Friday, International Energy Agency Executive Director Fatih Birol said the conflict represents “the greatest global energy security threat in history.”
Birol, a Turkish economist and energy expert, pointed out that the current conflict has cut off twice the volume of gas that Europe lost from Russia in 2022, after the start of the Ukraine war.
The Strait of Hormuz has effectively been blocked by Iranian threats to target vessels, halting “vital arteries” of the global economy, he said.
Birol warned that markets and politicians are still underestimating the depth of the crisis, saying: “People understand that this is a major challenge, but I am not sure that the depth and the consequences of the situation are well understood.”
Even if the conflict ends and the strait is reopened, restarting damaged or shuttered oil and gas fields will take significant time, he said: “It will be six months for some (sites) to be operational, others much longer.”
In response to strait’s closure, last week the IEA announced the release of 400 million barrels of oil and refined products from emergency reserves, about 20% of its total stockpiles.
Birol said additional supply discussions are underway with major producers including Canada, Mexico, Brazil, and Norway, though he stressed these measures cannot fully offset the loss of Middle Eastern output.
READ: Iran’s new supreme leader says country’s defense stronger than ‘enemies’ assume
“The single most important action is the resumption of transits through the Strait of Hormuz,” he said.
Birol also urged European governments not to ease restrictions on Russian gas imports, warning against renewed dependence on Moscow despite the current crisis.
Russia’s Nord Stream pipelines remains inoperable, and its reputation as a reliable supplier has been severely damaged, he said.
Looking ahead, Birol said the crisis could reshape global energy policy, echoing the lasting impact of the 1973 and 1979 oil shocks.
He predicted increased investment in renewable energy, a revival of nuclear power, and accelerated adoption of electric vehicles, alongside a possible return to coal use instead of gas.
Regional hostilities in the Middle East have escalated since Israel and the US launched a joint offensive on Iran on Feb. 28, killing more than 1,300 people, including then-Supreme Leader Ali Khamenei.
Iran has retaliated with drone and missile attacks across the region and has effectively closed to most ships the Strait of Hormuz, a key oil transit route that normally handles about 20 million barrels per day and roughly 20% of global liquefied natural gas trade.
This work by Middle East Monitor is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
- US sues Harvard University over antisemitism allegations, seeks to freeze grants
- Ahead of Netanyahu visit, Human Rights Watch urges Hungary to arrest Israeli premier
- Israeli reservist detained over alleged leak of Iron Dome secrets to Iran
- Iran war poses ‘greatest energy security threat in history’: International Energy Agency
- Iran’s new supreme leader says country’s defense stronger than ‘enemies’ assume
- NATO relocates Iraq mission personnel to Europe amid Mideast escalation
- Iran will have ‘zero restraint’ if its infrastructure attacked, says foreign minister
- FIFA’s inaction on football clubs based in Israeli settlements flouts international law: Amnesty
- Hezbollah says it has launched 9 attacks on Israeli settlements since early Friday
- Switzerland suspends arms exports to US amid Iran attacks, citing neutrality
- Spanish premier unveils $5.7B plan to cope with ‘illegal’ Iran war
- Netanyahu’s ‘terrorism’ continues to threaten peace, says Turkish president
- Is Washington already regretting its war with Iran?