Confronting the ‘largest energy security threat’

The head of the International Energy Agency (IEA) says we are facing the biggest energy crisis ever.

More than seven months on, it continues with little relief in sight. The US-Israel war on Iran is driving the crisis, which has disrupted global shipping in the Strait of Hormuz, a vital waterway for 20 percent of the world’s oil and liquefied natural gas.

That has sent fuel prices soaring, interrupted supply chains and raised fears of a serious energy shortage.

IEA Executive Director Fatih Birol says global oil stocks are declining fast. G7 countries and members of the IEA have tapped into their strategic emergency reserves. But relief has been short-lived and the global economy is still feeling the pain.

The Russia-Ukraine war is putting additional strain on the oil industry, as both countries target each other’s energy facilities.

Birol says if tensions in the Middle East are not resolved, it could have serious consequences for the world economy. He warns of challenging months ahead as winter approaches in the Northern Hemisphere.

Birol says it will take time for the energy sector to recover from this crisis, and he acknowledges the industry will likely never be the same again.