Fatih Birol, executive director of the International Energy Agency, has declared the Iran war a bigger energy crisis than the two oil shocks that defined the 1970s - combined. Speaking in Canberra, Australia, on Monday, he warned that even a ceasefire would not bring swift relief to global energy markets.
The war has slashed global oil supply by 11 million barrels a day - more than 10 percent of total output, "Hvylya" reports, citing The New York Times. That figure exceeds the 10 million barrels per day lost during the 1973 and 1979 crises combined.
Birol accused global decision makers of not appreciating the severity of the crisis. The IEA, an organization of 32 nations, is in talks with Asian and European governments about releasing additional oil from strategic reserves. Less than two weeks ago, it coordinated the largest release of stockpiled oil in history. "If it is necessary, of course, we will do it," he said.
"It will take some time to come back to the normal days we had before the war was started," he warned, underscoring that recovery would stretch well beyond any potential ceasefire.
Hours after his remarks, oil prices fell more than 10 percent when President Trump claimed the U.S. and Iran had held productive talks on ending the war. Iran denied any discussions had taken place. Prices spiked again early Monday, with international benchmark crude topping $114 a barrel before falling to around $100.
Birol, who said he had stayed silent for the first three weeks of the conflict, began his global tour in the Asia-Pacific region - heavily reliant on oil and commodities shipped through the Strait of Hormuz, which Iran has effectively closed since the start of hostilities.
Also read: Friedman Warns Global Oil Reserves Will Buy Only Weeks, Not a Solution.