IEA: The spectre of an energy crisis worse than that of 1973 looms over the Strait of Hormuz

The International Energy Agency (IEA) has sounded the alarm over the crisis paralysing the Strait of Hormuz, describing the situation as “the greatest threat to global energy security in history”. IEA Executive Director Fatih Birol said on Monday 23 March in Canberra: “We are in the midst of a global energy crisis”, adding that the current impact is “more severe than the oil shocks of the 1970s”.

According to the IEA, the global market has lost around 11 million barrels per day of oil and refined products, a volume greater than the combined losses recorded during the two major oil crises of 1973 and 1979. The Strait of Hormuz, through which around 20% of the world’s oil (and a significant proportion of liquefied natural gas) traditionally passes, remains blocked, causing simultaneous disruptions in the oil and gas markets.

In response to this extreme strain on supply, on 11 March 2026 the IEA coordinated the largest release of strategic reserves in its history: 400 million barrels from the emergency reserves of its member countries. The agency is currently consulting with several governments, including those in Asia and Europe, on the possibility of a further round of stock releases to stabilise the markets.

Fatih Birol, however, emphasised the temporary nature of these measures: “Releasing oil reserves may help to mitigate the impact on the global economy, but it is not the solution. The most decisive solution remains the reopening of the Strait of Hormuz. As long as this strategic waterway remains blocked, global energy security will remain under threat.”

The crisis, linked to tensions in the Middle East, has also caused serious damage to more than 40 energy infrastructure facilities across nine countries in the region. It has led to a sharp rise in oil and gas prices, making it more difficult to access refined products and significantly increasing import costs for many importing economies.

In Africa, several countries – including Ghana, South Africa and Kenya – are bearing the brunt of this price rise and are now turning to the Dangote refinery in Nigeria to secure their fuel supplies, highlighting the continent’s vulnerability to external shocks.

The IEA says it is ready to intervene “if necessary” to support energy markets, but warns: “No country will be immune” if the crisis drags on. The swift reopening of the Strait of Hormuz appears to be the only sustainable solution to avert a major global economic shock.

This warning comes at a time when Brent crude prices have already crossed critical thresholds, reminding policymakers and operators of the strategic importance of the Gulf’s shipping lanes and the need for greater international coordination.