Washington : The ongoing tensions in the Middle East appear to be escalating into a global energy crisis. International Energy Agency (IEA) chief Fatih Birol has warned that Europe’s jet fuel reserves are extremely limited, lasting only about six weeks or so. If the situation doesn’t improve, flight cancellations could occur in the near future.
Hormuz has become the ‘throbbing point’ of the crisis.
Birol cited the Strait of Hormuz as the biggest source of the crisis. This is the sea route through which approximately 20% of the world’s oil trade passes. The ongoing war has disrupted supplies there, impacting the global supply of oil, gas, and other essential resources.
He clearly said – if this route is not opened soon, it could prove to be “the biggest energy crisis ever”.
Fuel shortage in Europe, impact on the world
According to the IEA chief, the shortage of jet fuel will be seen first in Europe.
- Flights will start getting cancelled
- Petrol, gas and electricity will become expensive
- Supply chain will be affected
This will have a direct impact on the global economy—inflation will rise and growth rates may slow down.
Poor countries are hardest hit
Birol warned that this crisis will affect all countries, but the developing countries of Asia, Africa and Latin America will suffer the most.
According to him,
- The economic damage will be uneven.
- Weaker economies will be more affected
- Some countries may even face recession.
Objection to the ‘toll booth’ system
Birol also strongly objected to Iran’s attempt to impose tolls on ships passing through the Strait of Hormuz.
He said that if this arrangement becomes permanent, it could lead to similar restrictions on other vital sea routes—such as the Strait of Malacca—in the future, posing a dangerous threat to global trade.
Tankers stranded, production halted
- 110+ oil tankers and 15+ LNG vessels are stranded in the Persian Gulf
- More than 80 energy infrastructures were affected in the war.
- It will take several months for production to return to normal, and up to two years for full recovery.
What next?
According to Birol, if the situation does not improve by the end of May, the world will have to
- high inflation
- slow economic growth
- and a potential recession
.
He also indicated that this crisis could rapidly turn the world towards nuclear energy and alternative energy sources in the future.
This clash of energy and geopolitics now appears to be engulfing the entire world. If the Strait of Hormuz isn’t reopened soon, the impact will be felt directly on both people’s pockets and travel in the coming weeks.
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