Global Energy Crisis Deepens As Oil & Gas Shocks Combine: IEA Chief

New Delhi, Mar 23 (KNN) The world may be in the midst of one of the most severe energy crises in decades, Fatih Birol, Chief, International Energy Agency (IEA), warned, citing escalating disruptions in the Middle East.

Speaking at the National Press Club of Australia on Monday, Birol said, at least 40 energy assets in the region have been “severely or very severely” damaged, raising concerns over global supply stability, ANI reported.

Cautioning that the situation is evolving into a crisis of unprecedented scale, combining multiple shocks to the global energy system, he noted, “The crisis, as things stand, is now two oil crises and one gas crash put all together.”

"The global economy is facing a major, major threat today, and I very much hope that this issue will be resolved as soon as possible," Birol added.

Global Economic Risks Intensify

The IEA chief highlighted that the Middle East’s central role in global oil and gas supply means disruptions could trigger price volatility and supply shortages worldwide. The warning comes as many economies are already facing inflation and slowing growth.

Drawing comparisons, he said the current situation mirrors the oil shocks of the 1970s and the energy disruptions following Russia's invasion of Ukraine, but is more complex due to simultaneous oil and gas shocks.

Call for Urgent Resolution

Birol stressed that a prolonged conflict could worsen the situation further, especially if additional energy infrastructure is affected.

He urged swift diplomatic efforts to stabilise the region, noting that resolving the conflict is critical to preventing further disruption in global energy markets and ensuring economic stability.

(KNN Bureau)