Paris, March 23 — International Energy Agency (IEA) Executive Director Fatih Birol warned that the world may be entering one of the most serious energy crises in decades, citing escalating disruptions in the Middle East. Speaking at the National Press Club of Australia, Birol said at least 40 regional energy facilities have been “severely or very severely” damaged, heightening concerns about the stability of global supplies.
Birol described the situation as an unprecedented compound shock to the global energy system, saying, “The crisis, as things stand, is now two oil crises and one gas crash put all together.” He warned this mix of oil and gas damage poses a significant threat to the global economy and urged a rapid diplomatic resolution to reduce risks.
Damage to the Middle East’s critical oil and gas infrastructure could spark market disruption, price volatility and supply shortages, Birol said, noting many economies already face inflationary pressures and slower growth. He compared the current turmoil to the oil shocks of the 1970s and the 2022 energy shock after Russia’s invasion of Ukraine, but stressed the present crisis is more complex because it combines both oil and gas impacts.
With the prospect of prolonged conflict raising uncertainty and the risk of further infrastructure damage, policymakers and international institutions are closely monitoring developments. Birol emphasized diplomacy as essential to stabilising markets and protecting economic stability. (ANI)
This report is from a syndicated feed and is published as received.
