The current conflict involving the US, Israel, and Iran poses a serious threat to global energy markets and the wider economy, according to IEA chief Fatih Birol. He stated that the crisis could be more severe than the oil shocks of 1973 and 1979, as well as the gas disruption following Russia’s invasion of Ukraine.
Birol noted that earlier oil crises caused a combined loss of about 10 million barrels per day, while the present situation has already led to disruptions of around 11 million barrels daily. He added that gas markets, especially in Europe, are under heavy strain, with losses nearing 140 billion cubic meters compared to 75 billion cubic meters after the Ukraine conflict. He warned that these disruptions will have lasting effects on key sectors such as petrochemicals and fertilizers, impacting the global economy over time.