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.
At least two people were killed, including the alleged shooter, and a number were injured in a shooting at a high school in the southern Phili...
U.S. Immigration and Customs Enforcement (ICE) is considering a scheme to help local police officers cover the legal and financial risks of making ...
Russia said its air defences downed 180 drones over the Moscow region overnight, with 620 drones reportedly targeting the area, according to Moscow...
At least 11 people were killed in Israeli strikes on southern Lebanon on Saturday, among the deadliest since a June ceasefire. Meanwhile, Qatar denied holding Iranian pilots. It said it had found the remains of one pilot after an airspace violation and had contacted Iran to coordinate a handover.
U.S. President Donald Trump says Washington is not seeking an extension of its memorandum of understanding with Iran, claiming the U.S. already controls the Strait of Hormuz through its naval blockade.
A wildfire in Croatia driven by strong winds descended on the tourist town of Omis overnight, engulfing houses, forcing about 1,000 people to evacuate to safety and injuring dozens, fire brigade and health officials said on Friday.
South Korea's presidential Blue House said on Monday it was reviewing U.S. President Donald Trump's comments on scaling back joint military drills. It added that it hoped a favourable relationship between Washington and Pyongyang could lead to meaningful talks.
Residents of villages in eastern Indonesia hit by a deadly earthquake that killed at least 54 people were awaiting aid on Monday as rescuers prepared to comb through collapsed buildings in search of people trapped beneath the rubble.
At least two people were killed, including the alleged shooter, and a number were injured in a shooting at a high school in the southern Philippine city of Zamboanga.
U.S. Immigration and Customs Enforcement (ICE) is considering a scheme to help local police officers cover the legal and financial risks of making immigration arrests under President Donald Trump’s crackdown.
Russia said its air defences downed 180 drones over the Moscow region overnight, with 620 drones reportedly targeting the area, according to Moscow Mayor Sergei Sobyanin.
The economic losses from a powerful earthquake that struck Colombia last week are expected to reach 30 trillion pesos ($9.58 billion), Colombia's President Abelardo De La Espriella said on Monday.
Taiwan is preparing to spend more money on its military than ever before, with President Lai Ching-te announcing plans for a record defence budget of $31.4 billion for 2027, taking military spending above three per cent of GDP for the first time.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment