IEA chief warns US-Iran conflict could trigger the worst energy crisis in history

The ongoing tensions involving the United States, Iran, and Israel are rapidly escalating into what could become the most severe global energy crisis ever recorded, according to the head of the International Energy Agency.

Speaking in a recent radio interview, IEA chief Fatih Birol described the situation as unprecedented. He emphasized that the world is already feeling the pressure from multiple overlapping crises, including disruptions in oil and gas supplies.

“This is indeed the biggest crisis in history,” Birol stated, highlighting how the current situation is more complex than past energy shocks.

One of the major concerns is the disruption of maritime traffic through the Strait of Hormuz — a critical passage that carries nearly 20 percent of the world’s oil and liquefied natural gas. Any blockage or slowdown in this region has immediate ripple effects across global markets.

The crisis is further intensified by the ongoing impact of the Russia-Ukraine War, which has already strained energy supplies, particularly in Europe, after significantly reducing Russian gas exports.

According to Birol, when combined, these geopolitical tensions are creating a perfect storm — one that surpasses previous energy crises such as those in 1973, 1979, and even the disruptions seen in 2022.

In response to rising oil prices and supply concerns, the IEA had earlier taken a historic step by releasing 400 million barrels of oil from strategic reserves in an attempt to stabilize the market.