IEA Warns World Faces Worst Energy Crisis Since 1973

The International Energy Agency has warned that the world is facing what it described as the most serious energy crisis since 1973, amid escalating tensions surrounding the Strait of Hormuz and surging global oil prices linked to the ongoing regional conflict.

IEA Executive Director Fatih Birol said oil prices have doubled compared with levels before the outbreak of the war, stressing that the most important step to ease the crisis is the full and unrestricted reopening of the Strait of Hormuz.

Birol warned that the consequences of the crisis are no longer limited to energy markets, as the impact is beginning to spread into other critical sectors. With the global agricultural season approaching, rising fuel and transportation costs could trigger sharp increases in food prices worldwide, adding pressure to already fragile economies.

He described the current situation as an unprecedented global challenge, arguing that the ongoing crisis is “far greater” than previous energy shocks experienced over recent decades.

Tensions in the Strait of Hormuz have disrupted oil and gas supplies in recent months, fuelling concerns about broader consequences for the global economy, financial markets and supply chains. The waterway remains one of the world’s most strategic maritime routes, carrying a significant share of global energy exports.

Energy analysts warn that any prolonged closure of the strait or additional restrictions on navigation could push oil and gas prices to new record highs, especially as many countries remain heavily dependent on Gulf energy supplies to support industrial production, transportation and food security.