IEA: The World is Facing the Most Severe Energy Crisis in History
IEA Executive Director Fatih Birol stated that the world is facing the most severe energy crisis in history due to the US-Israel-Iran conflict. Birol previously stated that the current global energy crisis is more severe than the combined crises of 1973, 1979, and 2022, and predicted that this crisis will accelerate the development and promotion of renewable energy, nuclear energy, and electric vehicles. "This is truly the biggest crisis in history."
Approximately 20% of the world's oil and liquefied natural gas are transported through the Strait of Hormuz. Following the outbreak of the US-Israel-Iran conflict, disruptions to shipping in the Strait have caused violent tremors in the energy market.
To address the global oil supply tensions caused by the conflict, the IEA announced on March 11th that its 32 member countries unanimously agreed to release 400 million barrels of strategic petroleum reserves. This is the largest coordinated reserve release in the agency's history to date.
Birol stated that he hopes it will not be necessary to tap into strategic petroleum reserves again, but the IEA is prepared to take further measures to address the energy shock caused by the US-Israel-Iran conflict if needed.