IEA chief warns of triple energy shock as Hormuz closure threatens global economy

2026-03-23 - 05:43

Head of the International Energy Agency, has issued a stark global warning, Monday, cautioning that the escalating US-Israel war against Iran and the closure of the Strait of Hormuz have pushed the world toward a severe economic and energy crisis. Speaking at Australia’s National Press Club, Birol described the situation as an unprecedented threat to global stability, stressing that the consequences could ripple across every economy if the conflict continues to intensify. “The global economy is facing a major, major threat today,” Birol said, urging swift international action to de-escalate tensions. “No country will be immune to the effects of this crisis if it continues on this path.” He warned that the current turmoil mirrors some of the most disruptive periods in modern energy history, drawing comparisons to the 1970s oil crisis and the economic fallout triggered by the Russian invasion of Ukraine, dw.com reports. In a striking assessment, Birol described the unfolding situation as a compounded global shock. “This is now two oil crises and one gas crisis combined,” he said, highlighting the scale and complexity of the disruption facing energy markets.