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IEA Flags Deepening Energy Crisis as Conflict Disrupts 11 Million Barrels Per Day Supply

The International Energy Agency has raised concerns over a potential large-scale global energy crisis, as ongoing conflict in West Asia has significantly curtailed oil supplies by nearly 11 million barrels per day (bpd), surpassing the scale of disruptions seen during the 1970s oil shocks.

Speaking at an event in National Press Club, IEA Executive Director Fatih Birol described the situation as extremely serious. He pointed out that while each of the two major oil crises in the 1970s led to supply losses of around 5 million bpd, the current disruption has already exceeded their combined impact.

Birol noted that the agency is in active discussions with governments across Asia and Europe to assess the possibility of releasing additional oil from strategic reserves if market instability continues. Earlier in the month, IEA member nations had already committed to releasing a record 400 million barrels from emergency stockpiles in an effort to stabilise global oil markets.

However, he clarified that there is no predefined price level that would automatically trigger further releases, indicating that decisions will depend on evolving market conditions.

He emphasised that restoring critical supply routes will be key to easing the pressure, particularly the reopening of the Strait of Hormuz, which plays a vital role in global energy flows.

Birol further cautioned that the present crisis could potentially surpass not only the oil shocks of the 1970s but also the disruptions caused by the Russia-Ukraine conflict, highlighting increasing risks to global energy security.