The escalating conflict involving Iran, the U.S. and Israel is fuelling what could become the most severe energy crisis the world has ever faced, according to the head of the International Energy Agency (IEA).
Speaking to France Inter radio on Tuesday, IEA Executive Director Fatih Birol described the situation as unprecedented. “This is indeed the biggest crisis in history,” he said, warning that the combined shocks to global oil and gas markets have created extraordinary pressure on energy supplies.
Birol said the crisis is being driven in large part by the war in the Middle East, which has severely disrupted maritime traffic through the Strait of Hormuz. The narrow waterway is a critical chokepoint, handling around one-fifth of global oil and liquefied natural gas exports.
With shipping through the Strait largely halted, global markets are facing immediate supply concerns. The situation has been worsened by lingering uncertainty after the collapse of an uneasy ceasefire between Washington and Tehran, following the U.S. seizure of an Iranian cargo ship and Iran’s subsequent threats of retaliation.
The volatility in the Middle East comes on top of the continuing fallout from Russia’s war in Ukraine, which cut off large volumes of Russian gas to Europe. Birol said the overlap of these crises has amplified market instability in a way not seen before.
Earlier this month, he said current conditions were worse than the oil shocks of 1973 and 1979, as well as the energy turmoil triggered by Russia’s invasion of Ukraine in 2022, combined.
Concerns over supply disruptions have already translated into sharp price movements. Crude oil prices surged during the conflict, trading above $100.
On 21 April, amid fears that the conflict could widen and further choke exports, U.S. crude rose 6.9 per cent to settle at $89.61 per barrel, while Brent crude climbed 5.6 per cent to close at $95.48 per barrel, according to market data. Analysts said the rally reflects heightened anxiety over prolonged disruption in the Strait of Hormuz.
In March, the International Energy Agency coordinated the release of a record 400 million barrels of oil from strategic reserves to calm markets and curb price spikes linked to the war.
While Iran recently signalled it may reconsider participating in talks expected to take place in Islamabad, Birol warned that prices will remain volatile as long as the conflict continues and global energy routes remain under threat.
Small businesses across Russia are increasingly feeling the impact of tighter internet restrictions, including ...
Taiwan’s President Lai Ching-te has reaffirmed the island’s commitment to sovereignty and regional ...
The global housing crisis has reached what UN officials describe as “staggering” proportions, with nearly...
The 13th Session of the World Urban Forum (WUF13) opened in Baku with ministers, UN officials and urban policy leaders. Participants call for ...
Thousands of displaced families in Gaza are facing growing infestations of rats and insects as worsening sanita...
The Group of Seven (G7) finance ministers will meet on Monday to discuss a global rise in oil prices and a joint release of oil from emergency reserves coordinated by the International Energy Agency, the Financial Times reports.
The global oil market may be tighter than headline supply-demand figures suggest, the International Energy Agency (IEA) said Friday, citing rising refinery activity and seasonal summer demand as key drivers of short-term market pressure.
Bulgaria has won the Eurovision Song Contest for the first time, taking victory in a final overshadowed by a boycott over Israel’s participation and the war in Gaza.
At least eight people were injured after a driver rammed a car into pedestrians in the northern Italian city of Modena, authorities said on Saturday. Four of the victims were reported to be in serious condition.
U.S. President Donald Trump said Washington could destroy Iran’s infrastructure “in two days,” while Tehran warned the U.S. would face growing economic costs from the conflict. The remarks came as Hezbollah reported new attacks on Israeli forces despite an extended Lebanon ceasefire.
At least eight people have died and 32 others were injured after a freight train collided with a public bus at a railway crossing in Bangkok on Saturday (16 May), triggering a fire that quickly spread through the vehicle.
U.S. President Donald Trump says China's Xi Jinping agreed Iran must reopen the Strait of Hormuz, as Tehran prepares a new shipping mechanism. Tensions over the U.S. blockade and stalled nuclear talks continue to disrupt global oil supplies.
Small businesses across Russia are increasingly feeling the impact of tighter internet restrictions, including limits on the messaging app Telegram, stricter controls on virtual private networks, and repeated mobile internet outages.
Taiwan’s President Lai Ching-te has reaffirmed the island’s commitment to sovereignty and regional stability following the recent meeting between U.S. President Donald Trump and Chinese leader Xi Jinping.
At least four people have been killed in a major Ukrainian drone attack on Russian territory, including the Moscow region, which authorities say faced its largest aerial assault in more than a year.
China has launched the world’s first experiment to study how artificial human embryos develop in space, marking a major step in understanding whether humans could one day reproduce beyond Earth.
Every day, an elderly woman in China’s Shandong province looks forward to a video call from her son. He asks about her health, tells her he has been busy with work, and promises he will come home once he has saved enough money. She tells him she misses him. He tells her to take care of herself.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment