The war in Iran has triggered a severe global energy shock as it enters its second month. The head of the International Energy Agency, Fatih Birol, said the crisis is now more intense than the oil shocks of the 1970s and the 2022 Ukraine-related surge combined.
According to the IEA, the conflict has already caused the largest supply disruption in the history of the global oil market. US oil prices have jumped more than 68% since the war began, reaching around $115, while Brent crude has climbed close to $110.
Birol warned that the impact goes beyond oil, describing it as a combined shock affecting energy, gas, and food markets, with serious consequences for the global economy.
A key concern remains the Strait of Hormuz, a vital route for global oil and commodity flows. Even if access is restored, the IEA expects it will take time for production levels to fully recover.
Despite the near-term risks, Birol noted the crisis could accelerate the shift toward renewable energy and nuclear power, while urging countries to reduce consumption, improve efficiency, and diversify supply chains.