Kamal Ghorui
The ongoing war in the Middle East has triggered an energy crisis for the world and “no country is immune” to its shockwaves, the International Energy Agency (IEA) warned on Monday. Addressing the National Press Club in Australia’s capital, Birol said the current situation has evolved into an unprecedented disruption, combining multiple shocks to oil and gas supplies.“This crisis as things stand is now two oil crises and one gas crash put all together,” he said. He also drew comparisons with the oil shocks of the 1970s and the fallout from Russia’s 2022 invasion of Ukraine.Highlighting the broader economic risks, Birol said, “The global economy is facing a major, major threat today, and I very much hope that this issue will be resolved as soon as possible.”Also read | Bigger US strike on Iran today? Trump’s ‘mild’ warning as 48-hour deadline expires todayCommenting on the fallout of the energy crisis, Fatih Birol said, “no country will be immune to the effects of this crisis if it continues to go in this direction,” adding, “so there is a need for global efforts.”The conflict has already caused extensive damage to energy infrastructure, with Birol noting that at least forty facilities across nine countries in the region have been “severely or very severely damaged”.
“At least forty… energy assets in the region are severely or very severely damaged across nine countries,” he said.The disruption was intensified by the near shutdown of the Strait of Hormuz, a key transit route for roughly one-fifth of global oil and gas shipments. The standoff has deepened as the war entered its fourth week, with Donald Trump and Tehran issuing repeated threats, including Washington’s demand for the reopening of the waterway.Follow live updates hereBirol identified the reopening of the Strait of Hormuz as the most critical step towards stabilising the situation, while also flagging rising fuel shortages in Asia as a growing concern. Oil markets reflected the strain, with US benchmark crude briefly touching the $100-per-barrel mark early on Monday. As fuel prices continue to rise, he added that there would not be any specific crude level to trigger another release.He added that the agency is currently consulting governments worldwide and remains prepared to release additional oil from emergency reserves if needed, though he clarified that no specific price level would automatically trigger such a move.Also read | Oil prices today: Brent crude steady at $112 as Trump’s ultimatum, Iran threat keep markets on edgeMeanwhile, US President Donald Trump issued an ultimatum to Iran to reopen the strategically critical Strait of Hormuz within 48 hours, warning of military consequences if it failed to comply. He said, “If Iran doesn’t fully open, without threat, the Strait of Hormuz, within 48 hours from this exact point in time, the United States of America will hit and obliterate their various power plants, starting with the biggest one first! Thank you for your attention to this matter.” In response, Tehran warned, signalling that any attack on its energy infrastructure would prompt retaliation beyond conventional military targets. The message was conveyed by Ebrahim Zolfaghari and carried by Islamic Republic of Iran Broadcasting. He said any strike on Iran’s fuel and energy sector would trigger action against a broader range of targets linked to the United States and its regional allies.Earlier this month, 32 member nations of the IEA agreed to release 400 million barrels of oil from their emergency reserves to the market, to deal with the ongoing energy supply disruption.
