“No Country Immune” IEA Chief Sounds Alarm on Worsening Energy Crisis

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Canberra: Fatih Birol, Executive Director of the International Energy Agency, has warned that no country will be “immune” if the ongoing Middle East conflict triggers a major global energy crisis.

Speaking at a press event in Canberra, Birol said the current disruption could surpass the combined impact of the oil shocks of the 1970s and rival the initial fallout from Russia's invasion of Ukraine.

He noted that the world lost around 5 million barrels of oil per day during each of the two crises in the 1970s a total of 10 million barrels. “As of today, we have lost 11 million barrels per day, more than those two shocks combined,” he said.

The crisis has been intensified by disruptions in the Strait of Hormuz, where an Iranian blockade has constrained the flow of oil and liquefied natural gas (LNG), a vital supply route for global energy markets.

Birol added that the IEA is in talks with governments across Asia and Europe about releasing additional emergency oil reserves if needed. Member countries had already agreed earlier this month to release a record 400 million barrels from strategic stockpiles — about 20% of total reserves to stabilise prices.

“There is no specific price trigger for another release,” Birol said. “Stock releases can calm markets, but they are not a long-term solution they only help reduce economic pain.”

Highlighting the vulnerability of the Asia-Pacific region, Birol said countries in the region are particularly exposed due to their dependence on energy and key resources transported through the Strait.

After meeting Anthony Albanese in Canberra, Birol is set to continue his global tour with visits to Japan and participation in an upcoming Group of Seven meeting.