IEA warns of worst energy crisis on record

The world is facing the most severe energy crisis in history, the head of the International Energy Agency, Fatih Birol, has warned, saying the situation surpasses even the oil shocks of the 1970s.

At that time, global markets faced a shortfall of about five million barrels of oil per day. Today, the gap could reach as much as 11 million barrels, placing far greater strain on supplies and prices.

Birol also highlighted the strategic importance of the Strait of Hormuz, a key route for global oil flows.

If the waterway were to remain closed, the consequences would be severe, with significant damage to the global economy, according to current estimates.

Developing countries in Asia, which rely heavily on energy imports, would be among the hardest hit. The crisis risks deepening existing economic inequalities and destabilising vulnerable regions.

(pir)