The International Energy Agency (IEA) warned Monday that at least forty energy assets across nine Middle Eastern countries have been “severely or very severely” damaged due to ongoing conflict. Fatih Birol, the IEA chief, said the global economy faces a major threat from the resulting energy crisis.
Speaking at the National Press Club in Canberra, Birol compared the situation to the 1970s oil crises and Russia’s 2022 invasion of Ukraine. He described the current disruption as “two oil crises and one gas crash combined,” highlighting the unprecedented scale of the emergency.
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The crisis has caused severe disruptions to petroleum shipments through the Strait of Hormuz, a critical passage for 20 percent of global oil and gas. Birol noted that these blockages have triggered a spike in global oil prices and threaten wider economic stability.
Beyond oil and gas, the IEA chief warned that trade in petrochemicals, fertilizers, sulfur, and helium is also affected. He said that these interruptions could have “grave consequences” for global markets, underscoring the interconnected nature of energy supply chains.
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Birol emphasized that no country will be immune if the crisis continues. He called for urgent international cooperation to resolve the conflict and restore energy security, stressing the need for swift action to prevent further economic fallout.