Europe heading for ‘largest energy crisis we’ve ever faced’

IEA Executive Director Fatih Birol said we are heading for “the largest energy crisis we have ever faced,” stemming from the pinch-off of oil, gas and other vital supplies through the Strait of Hormuz.

The impact will be “higher petrol (gasoline) prices, higher gas prices, high electricity prices,” said Birol.

In an interview with Associated Press published today, he warned that flight cancellations could begin “soon” if oil supplies remain blocked by the Iran war.

And some parts of the world will be hit worse than others.

He shared that “the front line is the Asian countries” that rely on energy from the Middle East, naming Japan, Korea, India, China, Pakistan and Bangladesh.

“Then it will come to Europe and the Americas,” Birol continued.

Birol said Europe has “maybe 6 weeks or so (of) jet fuel left,” after the effective closure of the Strait of Hormuz led to “the largest energy crisis we have ever faced.”

And if the Strait of Hormuz isn’t reopened, Birol said that for Europe: “I can tell you soon we will hear the news that some of the flights from city A to city B might be cancelled as a result of a lack of jet fuel.

Where is it going to have the most effect?

“The countries that will suffer the most will not be those whose voices are heard a lot.

“It will be mainly the developing countries. Poorer countries in Asia, in Africa and in Latin America,” said the Turkish economist and energy expert who has led the IEA since 2015.

The US is currently blockading Iranian ports, while Tehran has laid mines in the vital waterway to restrict traffic through the strait.

Nearly 20% of the world’s traded oil passes through the Strait of Hormuz in peacetime.

Birol warned that not reopening the waterway within weeks could compound the repercussions for global energy supplies.

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