Fatih Birol, the executive director of the International Energy Agency, has declared that the war in Iran has removed more oil and gas from global markets than any crisis in recorded history, surpassing even the combined impact of the 1970s oil shocks and the Ukraine gas emergency. He made the statement during a visit to Australia, where he met senior government officials and spoke to media about the worsening global energy situation. His comments reflect the extraordinary scale of disruption that has unfolded since military operations in Iran began.
The crisis began with US and Israeli strikes on Iranian targets on February 28 and has since escalated into a full-scale regional conflict. The Strait of Hormuz was subsequently closed to commercial shipping, cutting off approximately 20 percent of the world’s oil supply from international markets. Birol noted that strikes on shipping vessels in the strait and the severe damage to Gulf energy infrastructure have made a rapid supply recovery impossible.
Oil losses from the conflict have reached 11 million barrels per day, while gas losses stand at 140 billion cubic metres. These figures compare to 5 million barrels of daily oil loss across both 1970s crises and 75 billion cubic metres of gas removed by the Ukraine conflict. In a single phrase, Birol captured the gravity of the situation: the world is currently facing two oil crises and one gas crisis all at the same time.
The IEA’s initial response included the largest emergency oil reserve release in the agency’s history, with 400 million barrels mobilized from member nations’ strategic stocks. Birol said the agency was actively consulting with governments in Asia, Europe, and North America about whether and when to authorize a further release. He also recommended governments adopt demand-reduction measures including remote working, lower speed limits, and restrictions on air travel.
The IEA chief expressed concern that some nations in the Asia-Pacific region were adopting defensive positions on their domestic fuel reserves, a trend he described as counterproductive. He welcomed Japan’s indication that it could participate in minesweeping efforts if a ceasefire was achieved in the strait. Above all, Birol emphasized that reopening the Strait of Hormuz was the only step that could begin to genuinely stabilize global energy markets.