The ongoing energy emergency caused by the Iran war is the most powerful proof in decades that global energy security cannot be taken for granted, according to Fatih Birol, the head of the International Energy Agency. Speaking in Canberra, the IEA chief said the speed with which a well-supplied global oil market had been transformed into a crisis situation demonstrated just how fragile energy security really was. He described the emergency as equivalent in force to the twin 1970s oil shocks and the Ukraine gas disruption combined.
The conflict began February 28 with US and Israeli strikes on Iran and escalated rapidly, leading to the closure of the Strait of Hormuz and widespread damage to Gulf energy infrastructure. Oil losses have reached 11 million barrels per day and gas losses 140 billion cubic metres, with at least 40 major Gulf energy assets severely damaged. These figures surpass every previous energy emergency in modern history.
The IEA acted with unprecedented urgency, releasing 400 million barrels from strategic petroleum reserves on March 11 — the largest emergency action in its history. Birol confirmed that further releases were under consideration and that the agency was in active consultations with member governments. He also called for demand-side policies including remote working, lower speed limits, and reduced commercial aviation.
The Hormuz strait, through which approximately 20 percent of global oil supply travels, remains closed to commercial shipping. The Asia-Pacific region has been most severely affected, while European markets have also seen diesel and jet fuel supplies tighten. Birol said reopening the strait was the single most important step the world could take to begin stabilizing energy markets and supply chains.
Iran threatened retaliatory strikes on US and allied energy and water infrastructure after Trump’s ultimatum expired. Birol expressed concern about nations hoarding fuel domestically and called for a unified global response. His overarching message was that energy security must be treated as a permanent, active priority — not as a background assumption that could safely be ignored until the next crisis struck.
