World faces worst energy crisis in decades, IEA chief warns
March 23, 2026 10:34 am
The war in the Middle East could plunge the world into its worst energy crisis in decades, International Energy Agency (IEA) Executive Director Fatih Birol warned on Monday, describing the situation as ‘‘very severe.’’
Speaking at the National Press Club in Canberra, Birol said the current crisis has already surpassed the scale of the two devastating oil shocks of the 1970s — combined.
‘‘Many of us remember the two consecutive oil crises in the 1970s... at that time, in each of the crises, the world lost about five million barrels per day — both of them together, 10 million barrels per day,’’ he said. ‘‘As of today, we have lost 11 million barrels per day — more than two major oil shocks put together.’’
Birol warned that the global economy now faces a ‘‘major, major threat’’ and that no nation would be spared if the crisis deepens. ‘‘No country will be immune to the effects of this crisis if it continues to go in this direction. So there is a need for global efforts,’’ he said, adding that he ‘‘very much hopes’’ the situation is resolved as soon as possible.
The energy warning comes amid a broader conflict that has engulfed the Middle East following a significant escalation in hostilities involving Iran. The war, which has drawn in multiple regional actors, has severely disrupted oil production and supply routes critical to global energy markets.
Iran, one of the world’s major oil producers and a key player in the Persian Gulf region, has been at the center of the conflict. Hostilities have threatened the free flow of oil through the Strait of Hormuz — the narrow waterway through which roughly 20 percent of global oil supplies pass — raising fears of prolonged supply disruptions.
The conflict has also prompted Israeli military strikes on Iranian energy infrastructure, including a key gas field, sending energy prices sharply higher and fueling concerns among Western governments and international institutions about the long-term stability of global energy supplies.
Source: Arab News
--Agencies
