Singapore, April 23 — The International Energy Agency (IEA) has warned the world is facing the biggest energy security threat in history, IEA Executive Director Fatih Birol told CNBC. He said the global market has already “lost 13 million barrels per day of oil” and is suffering major disruptions across vital commodities. Speaking virtually from Singapore, Birol warned that the current conflict involving Iran and what he described as an effective closure of the Strait of Hormuz — now operating under a “double-blockade” with neither Iran nor the US permitting normal transit — could trigger the largest energy crisis on record. He urged governments to strengthen economic resilience by accelerating alternative energy deployment. Birol said the disruption is likely to hasten the energy transition, boosting nuclear power, renewables (especially solar and wind) and electric vehicles. At the same time, he cautioned that some large Asian countries may temporarily increase coal use as they face supply pressures. The IEA called the Strait of Hormuz one of the world’s most critical oil transit chokepoints. It previously carried around 20 million barrels per day of oil and petroleum products; its effective closure, the agency warned, would slow global growth, add upward pressure to inflation and could lead to energy rationing. The agency also flagged an “imminent jet fuel crunch in Europe,” noting Europe historically relied on Middle Eastern refineries for roughly 75% of its jet fuel supply — a flow that is now largely disrupted. While European countries are seeking alternative supplies from the United States and Nigeria, Birol said failure to secure sufficient imports could force measures to reduce air travel. To ease market strain, the IEA’s 32 member countries agreed in March to release 400 million barrels from emergency reserves; a second release is being considered. Birol emphasized that these releases can help reduce pain but are not a lasting solution — the real remedy, he said, is reopening secure transit through the Strait of Hormuz. This report is based on a syndicated feed and was published as received; the publisher assumes no responsibility for its accuracy or completeness.
