Fatih Birol, who leads the International Energy Agency, has raised one of the most serious alarms in the organization’s history, warning that the Iran conflict has inflicted energy losses equivalent to three separate historical crises at once. The IEA chief made his comments during a high-profile visit to Australia’s capital, where he briefed journalists and met with government leaders. His message was unambiguous: the world is in the grip of an energy emergency of historic proportions.
The conflict began with strikes on Iranian targets on February 28 and has since escalated dramatically, leading to the closure of the Strait of Hormuz and widespread damage to Gulf energy infrastructure. Birol said that at least 40 energy assets in the region had been severely damaged, complicating any prospect of a rapid supply recovery. The IEA released 400 million barrels of oil from strategic reserves in response, the largest such action in its five-decade history.
In numerical terms, the crisis has already removed 11 million barrels of oil per day from global markets and 140 billion cubic metres of gas. The 1970s oil crises combined removed only 5 million barrels daily, while the Ukraine war cost global gas markets around 75 billion cubic metres. Birol summarized the situation bluntly: the world is facing two oil crises and one gas crisis simultaneously.
The Strait of Hormuz, a narrow waterway connecting the Persian Gulf to global shipping lanes, carries about 20 percent of the world’s oil supply. Attacks on tankers traversing the strait have halted commercial traffic and triggered emergency responses across Asia, Europe, and North America. Japan has signaled it could potentially deploy military vessels for minesweeping operations if a ceasefire is achieved.
US President Donald Trump issued Iran a 48-hour ultimatum to reopen the strait, threatening destruction of its energy infrastructure if the deadline passed without action. Iran responded by threatening attacks on American and allied energy and desalination infrastructure in the region. Birol urged calm and coordination, saying that global cooperation — not unilateral action — offered the only sustainable path through the crisis.