economy
March 24, 2026
IAEA Head Warns: "World in Energy Crisis Worse Than 1970s Oil Shocks Combined"
According to him, the crisis in the Middle East has worse consequences for oil than the two oil shocks of the 1970s.
TL;DR
- IEA chief Fatih Birol warns of a global energy crisis worse than the 1970s oil shocks and the Russian-Ukrainian gas crisis.
- The conflict involving Iran has led to significant reductions in global oil (11 million bpd) and LNG (140 billion cubic meters) supplies.
- At least 40 energy facilities in nine countries have been severely damaged.
- The effective closure of the Strait of Hormuz is a major contributor to the crisis, typically handling about a fifth of global oil and LNG supplies.
- The IEA has proposed measures to reduce energy consumption, such as promoting remote work and carpooling, and lowering highway speed limits.
- US President Donald Trump issued a 48-hour ultimatum to Iran to unblock the Strait of Hormuz or face destruction of its power plants.
- Iran has threatened to close the waterway and attack regional energy and water infrastructure if attacked by the US.