Iran war triggers ‘largest energy crisis in history’, IEA says

The war involving Iran is causing the largest energy crisis in history, the head of the International Energy Agency said on 21 April, Reuters reported, as disruption to key shipping routes tightens global oil and gas supply.

IEA Executive Director Fatih Birol said the conflict between Iran, the United States and Israel has driven a simultaneous oil and gas crisis, adding to earlier disruption caused by Russia’s war in Ukraine.

“This is indeed the biggest crisis in history,” Birol told France Inter radio. He said the current situation exceeds the impact of previous crises in 1973, 1979 and 2022 combined.

The war has disrupted maritime traffic in the Strait of Hormuz, which carries around one fifth of global oil and liquefied natural gas shipments.

It has also added to supply pressure after Russian gas exports to Europe were reduced following the Ukraine war.

Birol said the crisis reflects shortages in both oil and gas, with supply routes under strain and demand continuing across regions.

In March, the IEA agreed to release a record 400 million barrels of oil from strategic reserves to ease rising prices linked to the conflict.

Birol said further releases remain under consideration as countries face continued pressure from supply disruptions.

Countries dependent on imported fuel are already adjusting to tighter supply and rising costs, with some African states raising fuel prices as global costs increase.

International Energy Agency data shows Morocco depends on external energy supply, relying entirely on imported oilafter its only refinery shut down in 2015 and sourcing most of its gas from Spain via a pipeline that previously carried Algerian fuel.

Morocco said earlier this month it had sufficient fuel stocks for several weeks, while authorities avoided disruption after depot owners called off a planned gas distribution strike.

The country is also pursuing longer-term supply options, including plans to expand gas infrastructure through a proposed pipeline linking West Africa to Europe, as supply disruptions persist.

Reuters, IEA, Maghrbei.org