The biggest energy crisis in history! IEA: The impact of the Strait of Hormuz blockade is far greater than the sum of the previous three crises combined

Ask AI · Why the Strait of Hormuz blockade poses a more severe threat to developing countries?

China Finance Network, April 8 (CIANet) (Editor: Liu Rui) Local time on Tuesday, the head of the International Energy Agency (IEA) said that the level of global energy supply disruption caused by Iran’s blockade of the Strait of Hormuz has already exceeded any energy crisis in history, including the oil crisis of the 1970s.

“The world has never experienced an energy supply disruption of this scale,” Fatih Birol said, describing the current crisis as “more severe than the crises of 1973, 1979, and 2022 combined.”

After Israel and the United States launched attacks, Iran nearly completely blocked traffic through the strait, cutting off the Strait of Hormuz—an important shipping lane accounting for about one-fifth of global oil and natural gas transportation—leading to a sharp rise in energy prices.

Birol also believes the global economy is facing multiple shocks triggered by this conflict. Its impact is not limited to the energy sector: “We are facing a major energy shock, and this shock includes an oil shock, a natural gas shock, and a food shock. This is a huge upheaval for the economy.”

Birol said that the impact of the disruption to Strait of Hormuz passage will ripple through advanced economies, including European countries, Japan, and Australia. However, he also warned that the threat to developing countries is more severe, because they are facing multiple pressures such as soaring oil and natural gas prices, rising food prices, and an overall acceleration of inflation.

Last month, IEA member countries agreed to tap their strategic reserves to respond to this supply shock. Birol said the relevant release efforts are already underway and will continue.

Birol also said that even if the Strait of Hormuz reopens, it will still take time to fully restore energy production in the region.

However, Birol said that while he is pessimistic about the war’s economic impact, this conflict may accelerate the development of renewable energy and nuclear power. In the long run, this could help the global economy. He suggested that countries remain cautious in how they use energy, prioritize improving energy efficiency, support the development of renewable energy, and build diversified supply chains.

（China Finance Network, Liu Rui）