The world is at risk of facing the most serious energy crisis in decades due to the conflict in the Middle East, warned Fatih Birol, director of the International Energy Agency (IEA), on Monday, March 23. He described it as a “major threat” to the global economy.
Birol stated, “As of today, we have lost 11 million barrels per day, more than the combined impact of the two major oil crises,” referring to the oil shocks of the 1970s.
He further added, “During those crises, the world lost about five million barrels per day for each, totaling 10 million barrels per day when combining both.”
Regarding the consequences of Russia’s invasion of Ukraine in 2022, Birol mentioned that this crisis now represents “two oil crises and a collapse of the gas market.”
The IEA is urging for “global-scale action” in response to the severe damage to energy infrastructure in the region, with at least 40 installations severely or very severely damaged across nine Middle Eastern countries.
The key concern raised by Birol is the global scale of this crisis, stating, “No country will be immune to the effects if this crisis continues on its current trajectory. Therefore, global action is imperative.”
He concluded, “The global economy is facing a major threat, and I sincerely hope this problem will be resolved as soon as possible.”
The Strait of Hormuz, through which 20% of the world’s oil production typically passes, is effectively blocked due to the Middle East conflict triggered by Israeli-American strikes against Iran.
As a response to the situation, US President Donald Trump has threatened to “strike and destroy” Iranian power plants “STARTING WITH THE LARGEST!” if Iran does not reopen the passage.
In an attempt to control the rising oil prices, the US has authorized the sale and delivery of Iranian oil stored on ships for a month. However, Tehran claims to have no surplus crude oil at sea.
[Context: The article discusses the severe energy crisis due to the conflict in the Middle East, impacting global oil production and threatening the economy. Fact Check: The information provided is based on statements made by Fatih Birol, the director of the International Energy Agency.]
