Iran war energy crisis equal to 70s twin oil shocks and fallout from Ukraine war, says IEA chief

Key Points:

• The International Energy Agency (IEA) warns that the current global energy crisis caused by the war in Iran rivals the combined impact of the 1970s twin oil shocks and Russia’s invasion of Ukraine, with significant disruptions to oil and gas supplies.
• Damage to at least 40 energy assets in the Gulf region and the closure of the strategic Strait of Hormuz, through which 20% of the world’s oil is transported, have severely constrained energy flows, leading to daily losses of 11 million barrels of oil and 140 billion cubic meters of gas.
• The IEA has called for demand-side measures such as increased remote work, reduced speed limits, and less air travel, while also releasing 400 million barrels of oil from strategic reserves—the largest emergency release in its history—to ease market pressures.
• US President Donald Trump has given Iran a 48-hour ultimatum to reopen the Strait of Hormuz, threatening destruction of Iran’s energy infrastructure, while Iran has vowed retaliatory strikes on US and regional energy and desalination facilities.
• The IEA continues to consult global leaders on potential further releases of emergency oil supplies but emphasizes that such measures are temporary relief and that reopening the Strait of Hormuz is the critical solution to stabilizing energy markets.