'No Country Will Be Immune': IEA Chief Warns Global Economy Under 'Major Threat' From Strait Of Hormuz Crisis

New Delhi: The head of the International Energy Agency (IEA), Fatih Birol, said Monday that the global economy is under "major threat" from the energy crisis caused by the Middle East war, warning that "no country will be immune" to its effects.

Fatih Birol, Executive Director, International Energy Agency, addressed the National Press Club of Australia in Sydney on "The Outlook for Global Energy Markets and Implications for Energy Security, Competitiveness and Sustainability".

Speaking at the Press Club, Birol compared the current energy crisis to those of the 1970s and the impact of Russia inavsion in Ukrain in 2022, saying "the global economy is facing a major, major threat today."

"The oil loss is equivalent to two 1970s price shocks, which caused global recessions, and exceeds two gas price shocks," he stated. He further hoped that I very much hope that this issue will be resolved as soon as possible," Birol said.

"No country will be immune to the effects of this crisis if it continues to go in this direction. So there is a need for global efforts," he said.

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.

Birol further said that at least forty energy assets had been "severely or very severely" damaged in the Middle East.

"At least forty... energy assets in the region are severely or very severely damaged across nine countries," Fatih stated. IEA executive director Birol also held a meeting with Australia’s Energy Minister, Chris Bowen, in Canberra.

In a post on X, he said, "Warm and constructive meeting with Australia’s Energy Minister, Chris Bowen, in Canberra this morning. We covered the situation in global oil & gas markets amid the war in the Middle East and the steps Australia is taking to strengthen fuel security."

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