The natural gas losses caused by the Iran war would, on their own, constitute one of the most serious energy emergencies in modern history — and they are just one part of a far larger catastrophe, the head of the International Energy Agency has said. Fatih Birol, speaking in Canberra, noted that 140 billion cubic metres of gas had been removed from international markets by the conflict, exceeding the 75 billion cubic metres lost during the Ukraine war. He said the world was effectively managing a major gas crisis on top of an even more devastating oil emergency.
The conflict began February 28 with US and Israeli strikes on Iran and has since led to the closure of the Strait of Hormuz and severe damage to Gulf energy infrastructure. Daily oil losses have reached 11 million barrels — more than double the combined totals of the 1970s oil crises — while the gas losses have exceeded the Ukraine conflict benchmark. Birol described the overall situation as two oil crises and one gas crisis occurring simultaneously.
The IEA responded with a record release of 400 million barrels from strategic petroleum reserves on March 11, representing just 20 percent of available stocks. Birol said further releases were under consideration and that the IEA was consulting with governments across Europe, Asia, and North America. He also called on governments to adopt demand-reducing policies including remote work, lower speed limits, and reduced air travel.
The Hormuz strait, through which about 20 percent of global oil flows, remains closed to commercial shipping. The Asia-Pacific region has been most severely affected by the closure, while European markets have also seen diesel and jet fuel supplies tighten. At least 40 Gulf energy facilities have been severely damaged, making a swift supply recovery impossible even after hostilities end.
Iran threatened retaliatory strikes on US and allied energy and desalination infrastructure after Trump’s 48-hour deadline to reopen the strait expired. Birol met with Australian Prime Minister Anthony Albanese and called for coordinated global action. He warned that the gas component of the crisis alone carried serious long-term consequences for energy markets and that its full economic impact was still unfolding.