International Energy Agency warns of severe global energy crisis
The International Energy Agency (IEA) has issued a stark warning about a severe global energy crisis triggered by the ongoing war in the Middle East, particularly involving Iran and disruptions in the Strait of Hormuz. IEA Executive Director Fatih Birol stated this on March 22-23, 2026, noting daily oil losses of 11 million barrels—exceeding the combined shocks of the 1970s oil crises and the 2022 Russia-Ukraine war.
The conflict has closed the Strait of Hormuz, a vital route for one-fifth of global oil shipments, petrochemicals, and other essentials, damaging over 40 energy facilities across nine Gulf countries. This has led to losses of 11 million barrels of oil per day and 140 billion cubic meters of gas, far surpassing historical precedents like the 5 million barrels lost in the 1970s crises.
No country will escape effects, with Asia-Pacific hit hardest through supply shortages and inflation in fuel, transport, and food prices. Import-dependent regions in Europe, Africa, and Asia face strained households and businesses, compounded by prior global oil surpluses now erased.
IEA members have released 400 million barrels from strategic reserves—the largest ever—and are discussing further releases of crude and refined products. Birol urges demand-side measures like remote work, speed limits, reduced air travel, and global coordination to reopen the Strait.
US President Donald Trump issued a 48-hour ultimatum to Iran on March 23, 2026, to reopen the Strait or face strikes on power plants. Belgium and the EU are exploring subsidies, such as €50 annual electricity bill cuts per household, amid rising costs.
