“We are facing the greatest energy security threat in history,” Fatih Birol, head of the International Energy Agency (IEA), told CNBC on Thursday.
“As of today, we are losing 13 million barrels of oil per day… and there is significant disruption to critical commodities,” he told Steve Sedgwick virtually on CNBC’s CONVERGE LIVE in Singapore.
Mr Birol had previously warned that the Iran war and the ongoing closure of the Strait of Hormuz would result in “the biggest energy crisis we have ever faced” and called on governments to strengthen their resilience with alternative energy sources.
“First of all, we expect nuclear power to get a boost…renewables like solar, wind, etc. will grow very strongly (and) we expect electric vehicles to benefit as well,” he said. Alternative fossil fuels could also make a comeback, he noted.
“We expect coal prices to rise and potentially rise again in some countries, particularly in some large countries in Asia.”
International Energy Agency Director-General Fatih Birol will be attending CNBC CONVERGE LIVE in Singapore on April 23, 2026.
CNBC
The vital sea route, which before the war transported an average of 20 million barrels of oil and petroleum products each day, is now under a “double blockade”, with neither Iran nor the United States allowing ships to enter or leave.
The IEA described the strait as one of the world’s “most important oil transport chokepoints” and warned that the closure could impact global economic growth, boost inflation and lead to energy rationing. The agency has warned that a jet fuel crunch is imminent in Europe, with some countries facing fuel shortages within weeks.
“Europe gets about 75% of its jet fuel from refineries in the Middle East, and that’s now basically down to zero…Europe is now trying to get fuel from the United States and Nigeria. If Europe can’t get additional imports from those countries now, we’re going to be in trouble,” Birol told CNBC on Thursday.
“First of all, we would really like to see the Straits open and refinery exports start from there, but we may also need to take some steps in Europe to reduce air travel,” he said.
A merchant ship spotted off the coast of Dubai on April 20, 2026.
– | AFP | Getty Images
The IEA, a group of 32 member countries, agreed in March to release 400 million barrels of oil from emergency stockpiles in an effort to reduce the impact of global energy supply disruptions.
Birol said in early April that the IEA would consider a second release of foreign exchange reserves, but that such a move would represent a reprieve rather than a solution to the crisis. “This will only alleviate the pain, not the cure,” he told the “In Good Company” podcast, hosted by Nicolai Tangen, CEO of Norges Bank Investment Management.
He added: “The cure is to open the Strait of Hormuz. We are buying some time, but I do not claim that this is the solution, it is a stock release.”
