The executive director of the International Energy Agency, Fatih Birol, has held high-level meetings with Australian Prime Minister Anthony Albanese as the global energy crisis sparked by the Iran war entered a potentially more dangerous phase. Birol used the occasion to warn publicly that the crisis now rivals the combined energy disruptions of the 1970s oil shocks and the Ukraine gas crisis. He also confirmed that further emergency measures beyond the historic reserve release on March 11 are under active consideration.
Birol told journalists that when US and Israeli military strikes against Iran began on February 28, many global leaders failed to immediately appreciate the gravity of what was unfolding. The resulting closure of the Strait of Hormuz, combined with extensive damage to Gulf energy infrastructure, has since removed 11 million barrels of oil per day and 140 billion cubic metres of gas from world markets. These losses far exceed those seen during any previous energy crisis.
The IEA responded to the crisis with a range of measures, including the release of 400 million barrels from strategic petroleum reserves and calls for governments to adopt demand-reducing policies. Birol said working from home, lower highway speed limits, and reduced flights were all practical steps that could meaningfully reduce pressure on global energy supply. He acknowledged these measures could only ease the pain, not cure the underlying supply problem.
Asia-Pacific nations have been particularly vulnerable to the Hormuz closure, given the region’s heavy reliance on Gulf oil imports. Japan has indicated it could consider deploying military vessels for minesweeping if a ceasefire is reached, while Australia, Japan, and South Korea have faced criticism from US President Trump for not providing greater assistance in the strait. Birol said the IEA remained in close contact with governments across all three continents about coordinating the global response.
The IEA chief warned that with at least 40 energy assets in the Gulf severely damaged, restoration of normal supply levels would take time even after peace is restored. He expressed concern about a trend of nations stockpiling fuel for domestic use, calling it counterproductive to global recovery efforts. His message was consistent and clear: international unity and the reopening of Hormuz are the only paths forward.
