Iran(The COW News Digital)The International Energy Agency (IEA) has warned that the current global energy crisis is more severe than any previous crisis in modern history, raising alarm over its far-reaching economic and geopolitical consequences.
Speaking at an event in Australia, IEA Executive Director Fatih Birol stated that the world is facing an unprecedented oil supply shock, surpassing even the major energy crises of the 1970s. He noted that disruptions caused by tensions in the Middle East, particularly the closure of the Strait of Hormuz and attacks on oil tankers, have significantly reduced global oil supply.
According to Birol, global oil supply has dropped by as much as 11 million barrels per day, a level of disruption not witnessed even during the oil crises of 1973 and 1979. He emphasized that the scale and speed of the current crisis make it uniquely dangerous for the global economy.
The IEA also highlighted a sharp decline in liquefied natural gas (LNG) supply. Birol revealed that global LNG availability has fallen by approximately 140 billion cubic meters, compared to a reduction of 75 billion cubic meters during the Russia-Ukraine War. This indicates a much deeper and more widespread disruption across energy markets.
Furthermore, ongoing tensions involving Iran, Israel, and the United States have exacerbated the crisis. Reports suggest that around 40 energy facilities across nine countries have been damaged so far, intensifying concerns over supply security and infrastructure stability.
Birol acknowledged that the severity of the crisis was initially underestimated, which delayed a coordinated global response. He stressed the importance of immediate international cooperation to mitigate further damage and stabilize markets.
While discussions are ongoing with multiple countries regarding the release of strategic oil reserves, Birol cautioned that such measures alone will not resolve the crisis. He underscored that reopening critical supply routes, particularly the Strait of Hormuz, remains essential for restoring balance to global energy markets.
The warning from the IEA comes at a time when global economies are already under pressure, with rising energy prices threatening growth, inflation stability, and energy security worldwide. Analysts fear that without swift diplomatic and logistical solutions, the crisis could have long-lasting impacts on both developed and developing nations.
