The International Energy Agency (IEA) warned that the ongoing conflict in the Middle East presents a serious risk to the global economy, with IEA Executive Director Fatih Birol emphasizing that no country would escape the consequences if the crisis persists.
According to Birol, disruptions caused by the conflict have exceeded those of the 1970s oil crises, as well as the gas supply issues stemming from the Russia–Ukraine war. He detailed the scale of the damage, noting that the war, which began on February 28, resulted in severe or extensive impacts to more than 40 energy sites across nine countries in the region.
This disruption has also affected the trade of essential commodities, including petrochemicals, fertilizers, sulfur, and helium, which poses further risks for global industry and agriculture.
In response to surging oil prices and tight supply, the IEA has engaged in discussions with governments in Europe and Asia regarding the potential release of additional emergency oil reserves.
Earlier this month, IEA member states had already agreed to deploy a record 400 million barrels from strategic stocks, representing 20% of their total reserves. However, Birol clarified that there is no set price trigger for further releases, stating that the impact of additional stockpiles would be limited to easing immediate market pressures rather than delivering a permanent solution.
Birol pointed out that Asia-Pacific economies are particularly vulnerable due to their dependence on energy shipments through the Strait of Hormuz, currently obstructed by Iranian controls. He stressed that reopening this strategic passage is the most critical step toward alleviating the situation.
Beyond emergency stock releases, the IEA is also encouraging governments to consider demand-reduction measures, such as lowering speed limits and expanding remote work, to mitigate fuel consumption. Meanwhile, these strategies would have to be tailored to each country’s circumstances.
Addressing Australia’s preparedness, Birol indicated that while the nation’s strategic fuel reserves remain below IEA benchmarks, recent improvements have led to a 30-day diesel supply, which he described as a reasonable level given current conditions.
Birol will continue consultations in Japan later this week ahead of upcoming discussions at the Group of Seven meeting.
