IEA Says WFH is the Right Step to Face Global Energy Crisis

JAKARTA - The world is currently preparing to face the potential for a global economic crisis due to escalating conflicts in the Middle East.

The International Energy Agency (IEA) assesses that relying on supply alone will not be sufficient to mitigate the largest supply disruption in the history of the global oil market.

Rather than waiting for the recovery of disrupted production, reducing demand is seen as a way to lessen the pressure on consumers and help lower prices more quickly.

Rising geopolitical risks have shaken the markets, driving up crude oil prices and increasing the costs of refined products such as diesel and aviation fuel.

This directly impacts sectors including transportation, logistics, and consumer goods prices.

Oil prices have surged more than 40 per cent since the start of the US-Iran conflict on 28 February, reaching the highest levels since 2022 due to supply disruptions, particularly from the effective closure of the Strait of Hormuz.

Several countries are beginning to tap into strategic oil reserves, with plans to release hundreds of millions of barrels into the market.

The IEA agreed last week to release 400 million barrels of oil to address supply disruptions caused by the Iran conflict.

This is the largest step in the organisation’s history, although no specific timeline for its distribution to the market has been set.

“Addressing the demand side is an important and immediate step to reduce pressure on consumers by improving affordability and maintaining energy resilience,” the IEA stated, quoted from CNBC on Sunday (22/3/2026).

Measures that households and businesses can take include promoting remote working, increasing the use of public transport and carpooling, and reducing non-essential air travel.

The primary focus of this policy is the road transportation sector, which accounts for around 45 per cent of global oil consumption.