The Iran war oil crisis is now worse than 3 of history's biggest energy shocks combined, IEA chief says
The Iran war oil crisis is now worse than 3 of history's biggest energy shocks combined, IEA chief says
Naomi BuchananTue, April 7, 2026 at 4:16 PM UTC
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An oil tanker nears the coast of Scotland.Peter Summers/Getty Images -
The war in Iran has created a severe energy shock as it drags into its second month.
The IEA chief said the crisis is worse than 2022 and the 1970s shocks combined.
US oil prices have risen more than 68% since the start of the war.
The International Energy Agency chief warned that the oil shock from the Iran war is worse than several historic oil crises combined.
The war is in its second month and has already produced the largest supply shock to the global oil market in history, the IEA said last month.
On Tuesday, the head of the group, Fatih Birol, told French newspaper Le Figaro that the current crisis is more severe than the oil shocks of 1973 and 1979, and the 2022 Ukraine-war shock, combined.
US oil prices are trading around $115, having surged over 68% since the start of the war. Brent oil was around $110 a barrel on Tuesday, up nearly 60% during the six weeks of war.
Birol told Le Figaro that the global economy is facing multiple shocks stemming from the conflict, and the impacts aren't limited to energy.
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"We are facing a major energy shock, which combines an oil shock, a gas shock, and a food shock. It is a major upheaval for the economy," he said.
The Strait of Hormuz is a critical chokepoint for global trade of oil and other commodities, including fertilizer and helium. The Strait is the big talking point in negotiations to end the war. Iran wants an agreement to include recognition of its control over the pathway.
The IEA chief said that even once the Strait of Hormuz is effectively reopened, it will take time to fully restore energy production in the region.
Birol said while he's pessimistic about the economic impact of the war, the conflict could accelerate efforts for renewable energy and nuclear power, which could help the global economy in the long term.
He recommends that countries be conservative with energy usage and prioritize efficiency, as well as support renewable energy growth and develop diversified supply chains.
on Business Insider
Source: “AOL Money”
