The biggest energy crisis in history! IEA: The impact of the Strait of Hormuz blockade is far greater than the sum of the previous three crises combined

China Financial News (CFN) April 8 (Editor Liu Rui) Local time Tuesday, the head of the International Energy Agency (IEA) said that the degree of global energy supply disruption caused by Iran’s blockade of the Strait of Hormuz has already exceeded that of any energy crisis in history, including the oil crisis of the 1970s.

“The world has never experienced an energy supply disruption of this scale,” Fatih Birol said, describing the current crisis as “more severe than the crises of 1973, 1979, and 2022 combined.”

After Israel and the United States launched attacks, Iran nearly completely shut down traffic through the strait, cutting off the Strait of Hormuz—a shipping lane that accounts for about one-fifth of global oil and natural gas transportation—leading to a sharp surge in energy prices.

Birol also believes the global economy is facing multiple shocks triggered by this conflict, with impacts not limited to the energy sector: “We are facing a major energy shock, and that shock includes an oil shock, a natural gas shock, and a food shock. This is a massive disruption for the economy.”

Birol said the impact of the Strait of Hormuz passage disruption will reach developed economies including European countries, Japan, and Australia, but he also warned that the threat faced by developing countries is even more severe because they are under multiple pressures, including skyrocketing oil and natural gas prices, rising food prices, and accelerating overall inflation.

Last month, the IEA member countries agreed to use their strategic reserves to respond to this supply shock. Birol said the relevant release work is already under way and will continue.

Birol also said that even if the Strait of Hormuz reopens, it will take time to fully restore the region’s energy production.

However, Birol said that while he is pessimistic about the war’s economic impact, this conflict could accelerate the development of renewable energy and nuclear power; in the long term, this may help the global economy. He urged countries to exercise caution in how they use energy, prioritize improving energy efficiency, support the development of renewable energy, and build diversified supply chains.