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‘We are facing the biggest energy security threat in history,’ IEA chief says
Fatih Birol said the 32-member agency’s 400 million-barrel stockpile release will only buy time as 13 million barrels a day remain offline.
- On Thursday, International Energy Agency Executive Director Fatih Birol told CNBC the world is "facing the biggest energy security threat in history," stemming from closure of the Strait of Hormuz, a critical maritime passage for global oil supplies.
- Conflict between Iran, the United States, and Israel caused a "double-blockade" of the strait, halting 20% of global oil and liquified natural gas supplies. Iran's attacks damaged 84 facilities, suspending 13 million barrels of daily production.
- Europe faces an "imminent jet fuel crunch" as 75% of its supply from Middle Eastern refineries is "basically now down to zero." The 32-member IEA released 400 million barrels from emergency stockpiles in March to mitigate rising prices.
- "This is only helping to reduce the pain, it will not be a cure," Birol explained regarding emergency stock releases. He emphasized that opening the Strait of Hormuz is the only viable solution to restore global transit.
- The crisis will likely accelerate the transition to alternative energy, as Birol expects "similar reactions from governments" to boost nuclear power and renewables. Long-term shifts towards electric vehicles are anticipated despite temporary fossil fuel reliance.
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The US and Iran are blocking the streets of Hormus. The head of the International Energy Agency believes that Europe, in particular, may soon face difficulties.
·Germany
Read Full ArticleWorld facing "biggest energy security threat in history": IEA chief Fatih Birol
IEA chief Fatih Birol warned that the world faces "the biggest energy security threat in history" due to the Iran conflict. With 13 million barrels of oil lost daily and the Strait of Hormuz blocked, Birol urged a shift to nuclear and renewables to survive the escalating global crisis.
·India
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Total News Sources57
Leaning Left7Leaning Right13Center10Last UpdatedBias Distribution44% Right
Bias Distribution
- 44% of the sources lean Right
44% Right
L 23%
C 33%
R 44%
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