Paris: Global energy markets face severe strain from intensifying disruptions in the Middle East, with impacts now surpassing the combined severity of the 1970s oil shocks and the 2022 loss of Russian gas supplies, International Energy Agency Executive Director Fatih Birol said.
“This crisis is worse than the two oil crises of the 1970s and the loss of Russian gas in 2022 put together,” Birol said.
The assessment follows continued damage to energy infrastructure across the region, where around 40 key facilities have been hit, disrupting operational capacity. “Some 40 key energy assets have been damaged in the Middle East,” he added, as reported by The Economic Times.
Global supply balances are already suffering, with more than 12 million barrels per day of crude removed from the market so far. “The biggest problem is the lack of jet fuel and diesel, already affecting Asia and expected to reach Europe in April–May,” he noted.
Supply losses are projected to deepen in the near term, with oil shortfalls in April expected to be twice as high as in March.
In response, energy authorities are weighing interventions, including releases from strategic reserves to stabilize markets if needed. “If we think there is a need for crude oil or products, we may intervene,” Birol said.
