The head of the International Energy Agency, Fatih Birol, has been holding urgent consultations with Asia-Pacific leaders as the region faces its worst energy supply crunch in a generation. Speaking in Canberra after meeting with Australian Prime Minister Anthony Albanese, the IEA chief warned that the crisis caused by the Iran war now rivals the combined force of the 1970s oil shocks and the Ukraine gas disruption. He said the region’s dependence on Gulf oil imports had made it uniquely exposed to the consequences of the Hormuz strait’s closure.
The Hormuz strait, through which about 20 percent of global oil flows, has been closed to commercial shipping after attacks on tankers. The closure, combined with damage to at least 40 Gulf energy assets, has removed 11 million barrels of oil per day and 140 billion cubic metres of gas from world markets. These losses far exceed those of any previous energy crisis, including the twin oil shocks that caused global recessions in the 1970s.
The IEA authorized the release of 400 million barrels from strategic petroleum reserves on March 11, the largest emergency action in its history, and pushed governments to adopt energy-saving policies. Birol said working from home, lower motorway speed limits, and cuts to commercial aviation were practical steps that could meaningfully reduce demand pressure. He confirmed discussions about further reserve releases were ongoing with governments across Asia, Europe, and North America.
Japan has signaled it could deploy military assets for minesweeping operations if a ceasefire is agreed, reflecting the depth of the region’s concern about the strait’s closure. Australia, Japan, and South Korea have faced criticism from US President Trump for not contributing more actively to efforts to secure Hormuz. Birol welcomed any steps that could help restore safe passage through the waterway and said the IEA fully supported international efforts in that direction.
Iran threatened retaliatory strikes on US and allied energy and desalination facilities after Trump’s 48-hour deadline expired. Birol warned that fuel stockpiling by individual nations was compounding the global supply problem. His overall message for Asia-Pacific governments was urgent: act collectively, coordinate internationally, and treat the reopening of Hormuz as the regional energy security priority it undeniably is.