WELLINGTON, New Zealand — The escalating Middle Eastern conflict has triggered alarm bells at the highest levels of global energy governance, with International Energy Agency Executive Director Fatih Birol issuing a stark warning about its potentially devastating economic consequences. Speaking at Australia’s National Press Club in Canberra on Monday, Birol characterized the Iran-Israel hostilities as a “major, major threat” to the worldwide economy that could leave no nation untouched if current trajectories persist. The crisis has already inflicted severe damage on approximately 40 energy installations across nine regional countries, according to the agency’s assessment. Birol’s sobering analysis suggests the combined impact has surpassed both the oil shocks of the 1970s and the natural gas market disruptions following Russia’s invasion of Ukraine. The warning comes amid intensified military actions, with Israel launching fresh strikes against Iranian targets and Tehran threatening retaliatory attacks against Gulf power plants. Meanwhile, former U.S. President Donald Trump escalated tensions by issuing a 48-hour ultimatum via social media demanding Iran open the strategically vital Strait of Hormuz to all vessels or face the “obliteration” of its energy infrastructure. Birol confirmed the IEA is actively consulting with European and Asian governments regarding potential coordinated releases of strategic oil reserves to stabilize markets, emphasizing the agency stands ready to act if market conditions deteriorate further.
International Energy Agency head says global economy faces ‘major, major threat’ because of Iran war
