Fatih Birol, the executive director of the International Energy Agency, has confirmed that the IEA has substantial tools remaining for further emergency action if the global energy crisis caused by the Iran war continues to worsen. Speaking in Canberra, the IEA chief said the record 400 million barrel reserve release on March 11 represented only 20 percent of available stocks, leaving significant capacity for additional interventions. He said the decision on further action would be based on ongoing market assessments and consultations with member governments.

Birol described the current crisis as equivalent to the combined force of the 1970s twin oil shocks and the Ukraine gas emergency, creating an emergency of genuinely historic proportions. The conflict began February 28 with US and Israeli strikes on Iran and has removed 11 million barrels of oil per day and 140 billion cubic metres of gas from world markets. At least 40 Gulf energy assets have been severely damaged, making supply restoration a long-term challenge even after hostilities cease.

The Strait of Hormuz, through which about 20 percent of global oil flows, remains closed to commercial shipping after attacks on tankers. The Asia-Pacific region has been hardest hit by the closure, while European markets have also seen diesel and jet fuel supplies tighten. Birol said Canada and Mexico’s increased output could provide some relief to Europe but would not compensate for the overall scale of global losses.

Demand-side measures recommended by the IEA, including remote working, lower motorway speed limits, and reduced commercial aviation, were being implemented by member states. Birol said these measures were helping to reduce pressure on markets and ease economic pain. But he stressed that they were temporary bridging actions — the only lasting solution was the reopening of the Hormuz strait.

Iran threatened retaliatory strikes on US and allied energy and water infrastructure after Trump’s 48-hour ultimatum expired. Birol met with Australian Prime Minister Anthony Albanese and expressed concern about individual nations stockpiling fuel domestically. He concluded by saying the IEA would not hesitate to act again if the situation required it, and that all options — including a second major reserve release — remained firmly on the table.