Global Energy Crisis on the Horizon, IEA Recommends WFH to Save Fuel

The International Energy Agency (IEA) has warned that the world is facing the potential for a major energy crisis due to unprecedented global oil supply disruptions. In this situation, the IEA asserts that controlling oil supply alone is insufficient to curb the surge in energy prices.

The IEA emphasises that efforts to suppress demand represent the fastest solution to reduce pressure on consumers. One recommended measure is working from home (WFH) to curb fuel consumption, particularly in the transportation sector.

The IEA also encourages the public to reduce land and air travel, increase the use of public transport, and engage in carpooling. These steps are deemed effective given that road transport accounts for approximately 45% of total global oil demand.

“Addressing demand is an important and urgent tool to reduce pressure on consumers by improving affordability and supporting energy security,” the IEA stated, as quoted from CNBC International on Saturday, 21 March 2026.

The energy crisis has been triggered by escalating conflict in the Middle East, particularly the war between the United States (US) and Iran, which has caused a sharp rise in oil prices. Since the war erupted on 28 February 2026, global oil prices have risen more than 40%, reaching their highest levels since 2022.

Supply disruptions have primarily occurred due to the effective closure of the Strait of Hormuz, a vital route through which around 20% of global oil consumption typically passes. This situation has unsettled the global energy market and increased prices for derivative products such as diesel and jet fuel, directly impacting transportation costs and goods prices.

In response, several countries have begun releasing strategic oil reserves. The IEA has even agreed to release 400 million barrels of oil to minimise the impact of the supply disruptions, although details on the timing of distribution to the market have not yet been specified.

However, the IEA considers demand reduction measures to be the primary key. In addition to WFH, other policies such as speed limits for vehicles, reducing private car usage, and shifting to more efficient energy sources are seen as helpful in curbing fuel demand.

Consequently, there has been a shift in the use of liquefied petroleum gas (LPG) from the transportation sector to essential daily needs, such as cooking. This step also aims to keep energy prices affordable by reducing reliance on LPG.