The world must not allow the energy crisis triggered by the Iran war to normalize a new era of chronic energy insecurity, according to Fatih Birol, the head of the International Energy Agency. Speaking in Canberra, the IEA chief said the crisis — equivalent to the combined force of the 1970s oil shocks and the Ukraine gas emergency — represented a critical test of the international community’s ability to manage shared global challenges. He called for decisive action to restore supply and build stronger long-term energy resilience.
The conflict began on February 28 with US and Israeli strikes on Iran and quickly escalated to include the closure of the Strait of Hormuz and widespread damage to Gulf energy infrastructure. Daily oil losses have reached 11 million barrels, while gas losses total 140 billion cubic metres — figures that surpass every previous energy crisis in modern history. At least 40 Gulf energy facilities have been severely damaged, raising serious questions about the timeline for supply recovery.
The IEA has deployed 400 million barrels from strategic petroleum reserves — just 20 percent of available stocks — and called on governments to adopt energy-saving policies. Birol confirmed that further reserve releases were under consideration and that the IEA was consulting with governments across Europe, Asia, and North America about the appropriate response. He reiterated that these measures could reduce economic pain but could not restore lost supply.
The Hormuz strait, through which roughly 20 percent of global oil flows, remains closed to commercial shipping. This has produced acute shortages across the Asia-Pacific region and tightened European fuel markets. Japan indicated it could participate in minesweeping operations if a ceasefire is reached, while Canada and Mexico’s increased production may provide some relief to Europe.
Iran threatened retaliatory strikes on US and allied energy and water infrastructure following Trump’s ultimatum to reopen the strait. Birol met with Australian Prime Minister Anthony Albanese and expressed concern about nations adopting a defensive, nationally focused approach to fuel management. His conclusion was that the world must use this crisis as a catalyst for building a more resilient global energy order — not accept a diminished and insecure status quo as the new normal.