The International Energy Agency warns: the current crisis is worse than that of the 1970s

SydneyThe 1973 oil crisis turned the global economy upside down, ushering in a period of high inflation and jeopardizing the energy supplies of many Western countries. Now, with the war in Iran and the closure of the Strait of Hormuz, through which 20% of the world's oil and gas passes, a crisis that could be much worse is looming, according to the executive director of the International Energy Agency (IEA), Fatih Birol. Birol said on Monday that the situation is "very serious" and surpasses the energy crises of the 1970s. Speaking at the National Press Club of Australia in Canberra, Birol said the current crisis is equivalent to "two oil crises and a gas buffer from 1973 and 1979 caused by embargoes and crude oil production cuts in the Middle East." "No country will be immune if the situation continues in this direction," Birol stressed during his one-day visit to Australia, where he was also scheduled to meet with Prime Minister Anthony Albanese before continuing his tour of Asia. Birol warned of the damage suffered by the regional energy sector, indicating that at least 40 infrastructure projects have been "seriously or very seriously" affected in nine countries, exacerbating supply uncertainty. The IEA chief emphasized that reopening the Strait of Hormuz is the main way to alleviate the crisis. Energy tensions.

This maritime corridor remains virtually blocked following the US and Israeli attacks on Iran on February 28. In this scenario, US President Donald Trump has demanded that Tehran fully reopen the strait, under threat of attacking Iranian electrical infrastructure.

For its part, Iran has responded by warning that if its energy grid is attacked, it will retaliate against energy facilities and desalination plants in various Middle Eastern countries. The impact is already being reflected in the markets, with a surge in the price of crude oil, which has been above $100 per barrel for days, in early trading on Monday.

The IEA Director has called for international cooperation to prevent further deterioration of the situation and urged a swift resolution to the conflict, given the risk of far-reaching global economic consequences.