The International Energy Agency warned Monday that the world faces its most severe energy crisis in decades due to the war involving Iran, surpassing the twin oil shocks of the 1970s.

IEA Executive Director Fatih Birol delivered the stark assessment during a speech at Australia's National Press Club. "The situation is worse than the two oil crises of the 1970s combined, as well as the crisis caused by the Russian invasion of Ukraine," Birol said. He noted that each 1970s crisis resulted in a loss of about 5 million barrels per day of oil, totaling 10 million barrels for both. "As of today, we have lost 11 million barrels per day — more than two major oil shocks put together."

The crisis also includes massive gas disruptions. Global gas markets have lost about 140 billion cubic meters, nearly double the 75 billion cubic meters lost after Russia's 2022 invasion of Ukraine, Birol added.

The disruptions stem from the conflict that began late February, involving U.S. and Israeli strikes on Iranian targets and retaliatory attacks. The Strait of Hormuz, through which around 20 million barrels per day of oil and significant liquefied natural gas typically flow—representing 20% of global oil consumption—has been effectively closed. This has driven crude oil prices above $100 per barrel, with even sharper rises in diesel, jet fuel, and liquefied petroleum gas.

At least 44 energy assets across nine Middle East countries have suffered severe or very severe damage, Birol reported. Key facilities include Iran's Kharg Island oil export terminal, Qatar's Ras Laffan LNG and LPG plants, Saudi Arabia's Ras Tanura and Samref refineries, and the UAE's Ruwais refinery and Fujairah port. Repairs could take months to years, prolonging the shortages.

The fallout extends beyond fuels. Trade in petrochemicals, fertilizers like urea, sulfur, and helium, critical for agriculture, batteries, pharmaceuticals, and semiconductors, has halted, posing risks to global supply chains and food security. Birol emphasized that "no country will be immune to the effects of this crisis if it continues." Asia, heavily reliant on the route, faces immediate shortages, with Europe and others to follow.

In response, IEA member countries released a record 400 million barrels from strategic reserves on March 11, the largest in the agency's history. Birol indicated more releases could follow after consultations. The agency issued a report Friday outlining demand-reduction measures, including working from home, cutting highway speed limits by 10 kilometers per hour, promoting carpooling, efficient driving, avoiding non-essential air travel, and shifting cooking fuels.

Birol called for global cooperation to resolve the conflict and reopen the strait, warning of escalating economic threats like higher inflation. "The global economy is facing a major, major threat today," he said.