The ongoing conflict involving Iran, the United States and Israel is triggering what could become the most severe energy crisis in history, according to the head of the International Energy Agency.
“This is indeed the biggest crisis in history,” Fatih Birol told France Inter radio in an interview broadcast on Tuesday, according to Reuters report.
“The crisis is already huge, if you combine the effects of the petrol crisis and the gas crisis with Russia,” he added.
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What is causing the ‘most severe energy crisis’ in history?
The escalation in the Middle East has disrupted maritime traffic through the Strait of Hormuz, a key route that carries roughly one-fifth of global oil and liquefied natural gas supplies.
This disruption comes on top of the ongoing impact of Russia’s war in Ukraine, which had already cut off significant gas supplies to Europe.
Birol had earlier warned that current conditions in global energy markets could surpass the combined severity of the crises of 1973, 1979 and 2022.
In response to rising oil prices triggered by the US-Israeli war with Iran, the IEA agreed in March to release a record 400 million barrels of oil from strategic reserves.
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US and Iran remain at odds
Oil prices have shown some easing as markets wait for possible negotiations between Washington and Tehran, though both sides remain at odds on ending the conflict.
Brent crude hovered near $95 a barrel after surging nearly 6% on Monday.
Iran has yet to confirm its participation in a second round of talks ahead of a ceasefire deadline on Wednesday.
Donald Trump said Vice President JD Vance is ready to travel to Pakistan for negotiations, while warning that military action could resume if Iran fails to reach an agreement. He told CNBC that the US is “ready to go.”
Oil markets continue to react sharply to shifting expectations around a potential deal and the security of shipping through the Strait of Hormuz.
The standoff risks worsening what is already seen as the most severe supply disruption, alongside unresolved tensions over Iran’s nuclear programme and Israel’s military actions in Lebanon.
