'The biggest energy security threat in history’: IEA chief warns 13 million barrels a day are gone
Fortune • • general
Key Points:
- Fatih Birol, executive director of the International Energy Agency (IEA), described the current energy crisis as the biggest energy security threat in history, driven by the ongoing conflict in Iran and the resulting blockade of the Strait of Hormuz.
- The Strait of Hormuz, a critical chokepoint for 20% of the world's oil trade, remains largely closed due to a double blockade by Iran and the U.S., with only a handful of tankers passing daily compared to 129 pre-war, causing oil prices to rise above $103 a barrel.
- The current crisis involves a loss of about 13 million barrels of oil per day and 100 billion cubic meters of gas, surpassing past major energy crises such as the 1970s oil shocks and the 2022 Russia-Ukraine energy disruption.
- The IEA has responded by releasing 400 million barrels of emergency oil stocks to stabilize prices and is considering further releases, while urging governments to implement cost-cutting measures like promoting public transportation.
- Birol emphasized that the ultimate solution to the crisis is reopening the Strait of Hormuz, warning that current measures only buy time and do not resolve the underlying issue.
