Warnings of the worst energy crisis in decades: the situation in the region is very dangerous
The Executive Director of the International Energy Agency, Fatih Birol, warned on Monday that the world could face the worst energy crisis in decades due to the war in the Middle East, stressing that the situation is “very dangerous.”
Speaking at the National Press Club in Canberra, he said: “So far, we have lost 11 million barrels per day, which is more than what we lost during the two major oil crises combined” in the 1970s.
He added: “At that time, the world lost about 5 million barrels per day in each of the two crises, totaling 10 million barrels per day when both crises are combined.”
He also referred to the repercussions of the Russia-Ukraine war since 2022, noting that the current crisis “represents, at this stage, two oil crises and a collapse of the gas market.”
He confirmed that at least 40 energy sites have been “severely or very severely” affected in nine Middle Eastern countries due to the war.
He stated: “No country will be immune to the effects of this crisis if it continues in this manner. Therefore, it is important to act on a global scale.”
He added: “The global economy is facing a serious threat, and I hope this issue will be resolved as soon as possible.”
Since the outbreak of the war triggered by a U.S.-Israeli attack on Iran on February 28, Tehran has responded by targeting countries in the region and nearly completely closing the Strait of Hormuz, a vital route for Gulf energy exports, which has led to a sharp rise in global oil and gas prices.
On Sunday, Iran threatened to fully close the strait, a day after U.S. President Donald Trump warned that he would destroy its energy facilities if it was not reopened within two days.
Trump said on his Truth Social platform on Saturday night: “If Iran does not fully reopen the Strait of Hormuz, without any threat, within 48 hours from now, the United States of America will strike and completely destroy all its energy facilities, starting with the largest ones!”
In an attempt to curb rising oil prices, the United States on Friday allowed the sale and delivery of Iranian oil and its derivatives stored aboard tankers for a period of one month. However, Tehran stated that it does not have surplus crude oil at sea.
