IEA Warns Middle East War Worse than 1970s Oil Crisis

Jakarta, CNBC Indonesia - The global economy is under severe threat from an energy crisis triggered by the war in the Middle East. This was stated by the head of the International Energy Agency (IEA), Fatih Birol, on Monday (23/3/2026).

He warned that “no country will be immune” to the impacts of this crisis.

Speaking at the National Press Club in Australia’s capital, Birol described the Middle East crisis as extremely severe and worse than the two oil shocks of the 1970s, as well as the combined impact of the Russia-Ukraine war on gas.

“This crisis, as it is happening now, is a combination of two oil crises and one gas crisis,” he said, quoted from CNA, on Monday (23/3/2026).

“The global economy faces a major threat at this time, and I very much hope this issue will be resolved as soon as possible,” Birol added.

“No country will be immune to the impacts of this crisis if it continues in this direction. Therefore, global efforts are needed,” he said.

US President Donald Trump and Tehran have issued retaliatory threats as the war enters its fourth week, with the US president demanding that the Islamic Republic reopen the Strait of Hormuz, which is blocked and through which about 20% of the world’s oil and gas shipments pass.

The blockage has nearly halted all oil shipments through that narrow waterway, and oil prices have surged.

The IEA is consulting with governments in Asia and Europe about releasing more stockpiled oil “if necessary” due to the Iran war, Birol said.

“If necessary, of course, we will do it. We will look at the conditions, we will analyse, assess the market and discuss with our member countries,” he added.