The head of the International Energy Agency said Monday that the global economy faces a “major, major threat” because of the Iran war.
“No country will be immune to the effects of this crisis if it continues to go in this direction,” Fatih Birol told Australia’s National Press Club in Canberra on Monday.
He said the crisis in the Middle East has had a worse combined impact than the two oil shocks of the 1970s and the effect on gas markets of the Russia–Ukraine war.
Oil prices continued to climb as the end of the Iran war was not in sight. Israel launched a new wave of attacks early Monday against Tehran, and Iran warned that it will strike power plants across the Middle East if US President Donald Trump follows through on his threat to bomb power stations in the Islamic Republic.
US WTI crude surged above $100 a barrel on Monday morning, and international benchmark Brent crude was priced at more than $113 a barrel.
Assessing the damage of the war in Iran that started on 28 February, Birol said 40 energy assets in nine countries across the region were “severely or very severely damaged”.
The official added that he was consulting with governments in Europe and Asia about the prospect of releasing further stockpiled oil.
“We will see, we will look at the markets,” he said. “If it is necessary, of course, we will do it, but we will look at the conditions, we will analyse, assess the market, and discuss with our member countries.”
As Iran continues its stranglehold on the Strait of Hormuz, US President Donald Trump gave a 48-hour deadline for Tehran to open the strategic waterway to all ships, saying that otherwise the United States would “obliterate” Iran’s power plants. Trump posted the threat to social media early Sunday in Middle East time zones.
