World faces biggest energy security threat in history: IEA chief

The world is currently facing one of the most severe energy security crises in history, according to Fatih Birol, head of the International Energy Agency; speaking to CNBC in Singapore on Thursday (April 23), he said that around 13 million barrels of oil per day have disappeared from the global market, causing major disruptions in the supply of energy and critical commodities, placing significant pressure on the global economy; he further noted that the situation has been exacerbated by the ongoing Iran-related tensions and the effective closure of the Strait of Hormuz, a vital waterway through which nearly 20 million barrels of oil and petroleum products used to pass daily before the crisis, but is now under a form of “dual blockade” due to restrictions linked to both Iran and the United States; this disruption could slow global economic growth, drive up inflation, and even force some countries to introduce fuel rationing; Birol warned that Europe is on the verge of a jet fuel shortage, as approximately 75 percent of its supply traditionally comes from Middle Eastern refineries, which has now nearly dropped to zero, forcing European countries to seek alternative imports from the United States and Nigeria, though failure to secure sufficient supplies could deepen the crisis; he added that while the crisis may accelerate the adoption of nuclear energy, renewables such as solar and wind power, and electric vehicles, it could also lead to a resurgence in coal usage in some large Asian economies; meanwhile, the International Energy Agency has already decided to release about 400 million barrels of oil from emergency reserves in March to ease market pressure, but Birol emphasized that this is only a temporary relief measure and not a lasting solution; he stressed that reopening the Strait of Hormuz and restoring normal export flows is the only real solution, warning that otherwise the crisis could worsen further, potentially even requiring measures such as reducing air travel in Europe.