Daijiworld Media Network - Canberra

Canberra, Mar 23: The ongoing conflict in West Asia could push the world into its worst energy crisis in decades, Fatih Birol, chief of the International Energy Agency (IEA), warned on Monday, describing the situation as “very severe”.

Addressing the National Press Club in Canberra, Birol said the scale of disruption has already surpassed previous global shocks. “Many of us remember the two consecutive oil crises in the 1970s, when the world lost about five million barrels per day in each crisis. Together, that was 10 million barrels per day. As of today, we have lost 11 million barrels per day,” he noted.

He said the IEA is in consultations with governments across Asia and Europe regarding a potential additional release of emergency oil reserves in response to the Iran-linked conflict. “If it is necessary, we will do it. We are closely analysing market conditions and will decide in coordination with member countries,” he added.

Earlier, on March 11, IEA member nations had agreed to release a record 400 million barrels of oil from strategic reserves to stabilise surging global crude prices. Birol clarified that there is no fixed price threshold that would automatically trigger another release.

Calling the present crisis more severe than the oil shocks of the 1970s combined with the impact of the Russia-Ukraine war, he stressed that restoring supply routes is crucial. “The single most important solution to this problem is opening the Hormuz Strait,” he said.