International Energy Agency (IEA) Executive Director Fatih Birol warned on Thursday that the world is facing the biggest energy security threat in history as the Iran war and the continued closure of the Strait of Hormuz severely disrupt global energy flows.
“We are facing the biggest energy security threat in history,” Birol said in an interview with CNBC at the CONVERGE LIVE event in Singapore.
He said the market has already lost 13 million barrels per day of oil supply and is also experiencing major disruptions in critical commodities.
Birol reiterated earlier warnings that the Iran war and the ongoing closure of the Strait of Hormuz could trigger the largest energy crisis ever faced, pointing to the waterway’s central role in global oil trade.
Before the war, an average 20 million barrels of oil and petroleum products passed through the strait each day. The route is now effectively under what Birol described as a “double-blockade,” with neither Iran nor the US allowing vessels to enter or exit the channel.
The IEA has described the Strait of Hormuz as one of the world’s most critical oil transit chokepoints and warned that its closure could weaken global economic growth, fuel inflation, and force energy rationing.