The head of the International Energy Agency has called for emergency energy coordination among the world’s major economies as the Iran war continues to devastate global energy markets. Fatih Birol, speaking in Canberra after meetings with Australian Prime Minister Anthony Albanese, said the scale of the crisis — equivalent to the 1970s twin oil shocks and the Ukraine gas emergency combined — demanded a response at the highest levels of international governance. He said the IEA was in active consultations with governments across Europe, Asia, and North America.
The conflict began February 28 with US and Israeli strikes on Iran, leading to the closure of the Strait of Hormuz and widespread damage to Gulf energy infrastructure. Oil losses have reached 11 million barrels per day and gas losses 140 billion cubic metres, far exceeding those of all previous energy crises combined. At least 40 Gulf energy assets have been severely damaged, making rapid supply restoration impossible even after hostilities cease.
The IEA released 400 million barrels from strategic petroleum reserves on March 11 — the largest emergency action in the organization’s history — representing just 20 percent of available stocks. Birol confirmed that further releases were under active consideration and that the agency was monitoring market conditions closely. He also called on governments to adopt demand-side measures including expanded remote working, lower speed limits, and reduced commercial aviation.
The Hormuz strait, through which about 20 percent of global oil supply flows, remains closed to commercial shipping following attacks on tankers. The Asia-Pacific region has been most severely affected, while European markets have seen diesel and jet fuel supplies tighten. Japan has indicated it could contribute minesweeping military assets if a ceasefire is achieved, and Canada and Mexico’s increased output may provide partial European relief.
Trump’s 48-hour ultimatum to Iran to reopen the strait expired without result, and Tehran threatened retaliatory strikes on US and allied energy and water infrastructure. Birol said the world needed a comprehensive and coordinated international energy response of the kind that could only emerge from the highest levels of global governance. He warned that the cost of inaction was rising with each passing day.