Fatih Birol, the chief of the International Energy Agency, has cautioned that the record release of 400 million barrels of oil from strategic reserves is a temporary measure that can ease but not resolve the global energy crisis triggered by the Iran war. Speaking in Australia, the IEA director described the crisis as the equivalent of two historical oil shocks and a full gas crisis occurring simultaneously. He warned that governments must not mistake the reserve release for a solution.
The IEA acted on March 11, authorizing the largest emergency release in its history to cushion the blow of supply disruptions caused by the Iran conflict. The fighting began on February 28 with US and Israeli strikes on Iran and quickly escalated, leading to the closure of the Strait of Hormuz. Birol said at least 40 Gulf energy installations have been severely damaged, making it impossible to quickly restore supply even after a ceasefire.
The numbers tell a sobering story. The crisis has removed 11 million barrels of oil per day from markets, compared to 5 million during the combined 1970s oil shocks. Gas losses stand at 140 billion cubic metres, exceeding the 75 billion removed by the Ukraine conflict. Birol summed it up as two oil crises and one gas crisis happening at the same time.
The IEA has called on governments to implement demand-reduction measures including working from home, lower motorway speed limits, and cuts to air travel. These recommendations echo steps taken during past energy emergencies, adapted to the specific conditions of the current crisis. Birol said the measures would help reduce economic pain while diplomatic and military efforts to resolve the conflict continued.
With Trump’s 48-hour ultimatum to Iran expiring, the risk of further escalation remained high. Iran threatened to target US and allied energy and desalination facilities in the region, raising the prospect of even greater supply disruptions. Birol confirmed the IEA was in discussions with member countries about a second potential reserve release, while emphasizing that the only real solution remained the reopening of the Hormuz strait.