SINGAPORE: The head of the International Energy Agency 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 disrupt global supply flows.
“We are facing the biggest energy security threat in history,” IEA Executive Director Fatih Birol said in an interview with CNBC at the CONVERGE LIVE event in Singapore.
Birol said global markets have already lost around 13 million barrels per day of oil supply and are experiencing major disruptions in critical commodities.
Birol reiterated earlier warnings that the Iran conflict and the closure of the Strait of Hormuz could trigger the largest energy crisis ever faced, highlighting the waterway’s central role in global oil trade.
Before the war, an average of 20 million barrels per day of oil and petroleum products passed through the strait.
The waterway is now under what he described as a “double-blockade”, with neither Iran nor the United States allowing vessels to enter or exit.
The IEA has identified the strait as one of the world’s most critical oil transit chokepoints.
Its closure, the agency warned, could weaken global economic growth, fuel inflation, and potentially force energy rationing.
The Middle East conflict has largely halted shipping via the Strait of Hormuz, impacting the trade of a wide range of energy products
Our new interactive tool shows how oil & gas tanker traffic, as well as other cargo ships, has changed in recent weeks 👉 https://t.co/4TREcg4xUv pic.twitter.com/L1mW5LnQqA
— International Energy Agency (@IEA) April 23, 2026
Europe faces jet fuel shortage
Birol also warned of a growing jet fuel supply crisis in Europe, saying the region had relied heavily on Middle Eastern refineries.
“Europe gets about 75% of its jet fuel from refineries in the Middle East and this is basically now zero,” he told CNBC.
Birol added that Europe is attempting to secure alternative supplies from the United States and Nigeria.
He warned that Europe could face serious difficulties if additional imports are not secured.
Governments may need to consider measures to curb air travel if disruptions persist, he said.
“I really hope, first of all, that the strait is opened and refinery exports start from there,” Birol said.
In an effort to ease supply pressures, the 32-member IEA agreed in March to release 400 million barrels of oil from emergency reserves.
However, Birol warned earlier this month that any further release would provide only temporary relief.
Speaking on the “In Good Company” podcast hosted by Nicolai Tangen, he said such measures would “reduce the pain” but not resolve the crisis.
“The cure is opening up the Strait of Hormuz,” he said, stressing that stock releases alone cannot address the underlying supply disruption.
Shift towards alternative energy
Birol urged governments to strengthen energy resilience through diversification.
He said nuclear power is likely to receive a boost, while renewable sources such as solar and wind are expected to expand rapidly.
Electric vehicles could also benefit from the crisis, he noted, although some countries—particularly in Asia—may increase reliance on coal and other fossil fuels in the short term.
