The world is facing one of the most severe energy shocks in decades, with multiple crises converging at once, according to International Energy Agency (IEA) Executive Director Fatih Birol.
Speaking at the National Press Club in Canberra, Birol compared the current turmoil to the oil shocks of the 1970s and the global disruption caused by Russia’s 2022 invasion of Ukraine.
“This crisis, as things stand, is now two oil crises and one gas crisis put all together,” he said, warning that the situation poses a serious threat to the global economy.
He stressed that no country would be spared if the crisis continues to escalate.
“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. No country will be immune to the effects of this crisis if it continues in this direction,” Birol said, calling for coordinated international action.
Birol also revealed that at least 40 energy assets across the affected region have been “severely or very severely damaged” amid the ongoing conflict, further tightening global supply.
The IEA is currently in discussions with governments in Asia and Europe on the potential release of additional oil from strategic reserves to stabilise markets.
Earlier this month, IEA member nations agreed to release a record 400 million barrels of oil from stockpiles in an effort to curb surging global crude prices.
“If it is necessary, of course, we will do it. We will analyse market conditions and discuss with our member countries,” Birol added.
The warning underscores growing concerns that prolonged supply disruptions could deepen the global economic slowdown and intensify inflationary pressures worldwide.
