IEA Chief Warns of ‘Biggest Energy Security Threat in History’ as Hormuz Crisis Surpasses 1970s Oil Shocks

IEA head Fatih Birol warns the Strait of Hormuz crisis has disrupted 13 million barrels of oil daily, surpassing the 1970s oil shocks and threatening global growth.

By: AXL Media

Published: Apr 26, 2026, 8:25 AM EDT

Source: Information for this report was sourced from CNBC

A Crisis Without Historical Precedent

In a stark address at the CONVERGE LIVE event in Singapore on April 24, 2026, IEA Chief Fatih Birol warned that the world is navigating an unprecedented energy catastrophe. The ongoing closure of the Strait of Hormuz—a vital maritime chokepoint—has resulted in the loss of 13 million barrels per day (mbpd) of oil supply. For context, this volume surpasses the 10 mbpd disruptions seen during the 1973 and 1979 oil shocks combined. Birol emphasized that the situation is "getting worse every day," evolving from a localized geopolitical conflict into a pervasive risk to global inflation and supply chains.

Strategic Stockpiles vs. Market Reality

To combat the supply vacuum, the IEA has authorized the release of 400 million barrels from emergency global stockpiles. While Birol noted that this intervention provided temporary relief to soaring prices, he characterized the move as merely "reducing the pain" rather than offering a permanent solution. The sheer scale of the Hormuz blockage means that even record-breaking stockpile releases cannot fully compensate for the sustained absence of Middle Eastern crude. Consequently, Brent crude futures have remained volatile, hovering around $107 per barrel as of late April.

Europe Braces for Jet Fuel Rationing

One of the most acute warnings issued by Birol concerns the refined fuels market, specifically in Europe. The disruption of crude flows has triggered a "jet fuel crunch," leading the IEA head to suggest that European policymakers may soon need to implement measures to reduce air travel. Without a significant influx of additional imports, Europe faces a shortage of refined products that could ground flights and paralyze transportation networks. Birol urged governments to consider demand-side restraints, including teleworking, expanded public transport, and reduced speed limits, to manage the dwindling supply.