Finance
Iea Chief: Current Oil and Gas Crisis Worse Than 1973, 1979, 2002 Together
Published by Global Banking & Finance Review®
Posted on April 7, 2026
2 min readLast updated: April 7, 2026
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IEA chief Fatih Birol warns that the current energy crisis—rooted in Iran’s near-total closure of the Strait of Hormuz—is more severe than the combined oil shocks of 1973, 1979, and the 2002 gas crisis, citing losses of 11 mb/d of oil and 140 bcm of gas. Disruptions have halted nearly all flows thro
IEA chief: current oil and gas crisis worse than 1973, 1979, 2022 together
IEA Warns of Unprecedented Energy Supply Disruption
(Corrects headline and first paragraph to change the year referred to by Birol to 2022 not 2002)
IEA Chief's Statement on the Crisis
PARIS, April 7 (Reuters) - The current oil and gas crisis triggered by the blockade of the Strait of Hormuz is "more serious than the ones in 1973, 1979 and 2022 together", Fatih Birol, the head of the International Energy Agency (IEA), told Le Figaro newspaper.
Magnitude of the Disruption
"The world has never experienced a disruption to energy supply of such magnitude," he said in an interview with the French newspaper released in its Tuesday edition.
Impact on Global Economies
Developed and Developing Nations at Risk
He said the European countries, as well Japan, Australia and others will suffer, but the countries most at risk were developing nations which will suffer from higher oil and gas prices, higher food prices and a general acceleration of inflation.
International Response to the Crisis
Strategic Reserve Releases
The IEA member countries agreed last month to release part of their strategic reserves. Some of this had already been released and the process continues, said Birol.
Blockade of the Strait of Hormuz
Causes and Consequences
In reaction to the strikes by Israel and the U.S., Iran has almost entirely blocked the traffic in the Strait of Hormuz, through which about 20% of world oil and gas regularly flows, creating a surge in energy prices.
(Reporting by Inti Landauro; Editing by Sudip Kar-Gupta)
Key Takeaways
- •Strait of Hormuz closure has disrupted nearly 20 mb/d of oil—about 25 % of seaborne oil trade—plus significant LNG volumes, making it the largest oil‑supply shock in history.
- •IEA estimates current oil loss (11 mb/d) exceed combined 1973 and 1979 shocks (5 mb/d each), while gas losses (~140 bcm) nearly double those from the Russia‑Ukraine war (~75 bcm).
- •IEA member countries responded by releasing 400 million barrels from reserves—the largest coordinated release ever—to counter unprecedented supply gaps.
Frequently Asked Questions about IEA chief: current oil and gas crisis worse than 1973, 1979, 2002 together
1Why does the IEA consider the current oil and gas crisis worse than previous ones?
IEA chief Fatih Birol cites the unprecedented scale of disruption caused by the Strait of Hormuz blockade, severely impacting global energy supply.
2Which countries are most at risk due to the oil and gas crisis?
Developing nations face the greatest risk, with increased fuel and food prices and accelerated inflation.
3What measures have IEA member countries taken in response to the crisis?
IEA member countries agreed to release part of their strategic oil reserves to help stabilize the energy supply.
4How has the Strait of Hormuz blockade affected global energy markets?
The blockade has halted about 20% of the world’s oil and gas flow, leading to a sharp increase in energy prices.
5What triggered the recent blockade of the Strait of Hormuz?
Iran almost completely blocked the Strait of Hormuz in reaction to strikes by Israel and the U.S., causing the current crisis.
