Singapore, April 23 (ANI): 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 “lost 13 million barrels per day of oil” so far and is experiencing “major disruptions in vital commodities.”
Speaking virtually from Singapore, Birol said the ongoing conflict involving Iran and the effective closure of the Strait of Hormuz — now subject to a “double-blockade” with neither Iran nor the US allowing normal transit — could produce “the largest energy crisis we have ever faced.” He urged governments to strengthen economic resilience by prioritising alternative energy sources.
Birol expects the crisis to accelerate the energy transition, boosting nuclear power, renewables (especially solar and wind), and electric vehicles. At the same time, he warned of a potential temporary resurgence of coal use in some large Asian countries due to pressure on supplies.
The IEA described the Strait of Hormuz as one of the world’s “most critical oil transit chokepoints.” It previously carried about 20 million barrels per day of oil and petroleum products; its closure, the IEA warned, will curb global growth, raise inflation, and could force “energy rationing.”
The agency highlighted an “imminent jet fuel crunch in Europe,” noting Europe historically depended on Middle Eastern refineries for roughly 75% of its jet fuel — a supply now “basically down to zero.” While Europe is seeking supplies from the US and Nigeria, Birol said failures to secure additional imports could force measures to reduce air travel.
To alleviate market strain, the IEA’s 32 members agreed in March to release 400 million barrels from emergency reserves; a second release is under consideration. Birol stressed these releases “only help reduce the pain” and are not a cure — “the cure is opening up the Strait of Hormuz.” (ANI)
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