IEA Chief Says No Country 'Immune' From Middle East Crisis

RunWithRugs · 2026-03-24T09:42:23+00:00

The IEA chief warns that escalating tensions in the Middle East are creating a significant global energy crisis, disrupting oil supply and threatening economies worldwide. Urgent demand-reduction measures are recommended to mitigate impacts.

RunWithRugs

2026-03-24 09:42:23

Abstract generation in progress

(MENAFN- IANS) New Delhi, March 23 (IANS) The International Energy Agency (IEA) chief Fatih Birol has warned that the global economy is facing a major threat due to the energy turmoil due to the escalating Middle East tensions.

The IEA chief said the current situation in West Asia poses serious risks to economies worldwide.

The global economy is facing a major, major threat today, and I very much hope that this issue will be resolved as soon as possible, Birol said while speaking at a media event in Australia.

The fallout would not be limited to a few economies and“no country will be immune to the effects of this crisis,” he noted.

The conflict has triggered the largest supply disruption in the history of the global oil market, with shipping through the Strait of Hormuz, which normally carries around 20 per cent of global oil consumption, reduced to a trickle.

Around 20 million barrels per day of crude oil and oil products typically transit the Strait.

Meanwhile, Iran’s Foreign Ministry said the Strait of Hormuz is not blocked and navigation continues in the waterway, with necessary measures being taken due to wartime conditions.

The ministry said that Iran has always respected the freedom of navigation and maritime security and safety, adding that it has worked to uphold those principles over the years.

Last week, the IEA set out a range of demand-side actions - including work from home and avoiding air travel - for governments, businesses and households to alleviate the economic impacts on consumers.

Among the immediate actions to reduce demand is work from home where possible - displacing oil use from commuting, particularly where jobs are suitable for remote work. Where possible, switch to other modern cooking solutions. Encouraging electric cooking and other modern options can reduce reliance on LPG, said the report.

“The war in the Middle East is creating a major energy crisis, including the largest supply disruption in the history of the global oil market. In the absence of a swift resolution, the impacts on energy markets and economies are set to become more and more severe,” said Birol.

-IANS

na/

MENAFN23032026000231011071ID1110893221

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.