GLOBAL ECONOMY UNDER ‘MAJOR THREAT’ FROM STRAIT OF HORMUZ CRISIS: IEA CHIEF
The global economy is under “major threat” from the energy crisis caused by the Middle East war, International Energy Agency chief Fatih Birol said Monday (Mar 23).
Speaking at the National Press Club in Australia’s capital, Birol described the crisis in the Middle East as “very severe” and worse than the two oil shocks of the 1970s, as well as the impact of the Russia-Ukraine war on gas, put together.
CNA – 23 March, 2026
“This crisis, as things stand, is now two oil crises and one gas crash put all together,” he said.
“The global economy is facing a major, major threat today, and I very much hope that this issue will be resolved as soon as possible,” Birol added.
“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.”
US President Donald Trump and Tehran have issued tit-for-tat threats as the war entered its fourth week, with the US president demanding the Islamic Republic reopen the blocked Strait of Hormuz, through which around 20 per cent of the world’s oil and gas shipments transit.
The bottleneck has nearly halted all petroleum shipments through the narrow waterway, and oil prices have spiked.
IEA is consulting with governments in Asia and Europe on the release of more stockpiled oil “if necessary” due to the Iran war, Birol said.
