World Experiencing Its Worst Energy Crisis In History Due To Iran War, IEA Head Says

The world is experiencing its worst energy crisis in history as a result of the Iran war, according to International Energy Agency head Fatih Birol.

Speaking to France Inter ​radio, Birol compared the ongoing crisis with those of 1973, 1979 and 2022 and said it is worse than all of them combined.

“The ⁠crisis is already huge, if you combine ​the effects of the petrol crisis and the ​gas crisis with Russia,” he claimed.

Birol has been constantly raising alarms about the consequences of the war and the blockade of the Strait of Hormuz, recently saying that energy output in the Middle East could take two years to go back to pre-war levels.

Speaking to Swiss outlet Neue Zuercher Zeitung, Birol said that, however, output recovery will “vary from country to country.”

“In Iraq, for example, ⁠it will take much longer than in Saudi Arabia,” he added. Elsewhere in the interview he claimed that even though the IEA is not releasing more emergency oil reserves, “it’s definitely under consideration.”

The impact is already being felt across different transportation industries. Spikes in oil prices as a result of the Iran war has added more than $100 to tickets of long-haul flights in Europe, according to a new study.

Campaign group Transport & Environment (T&E) analyzed prices by mid-April compared to those before the war began on February 28. For example, a ticket from Paris to New York costs $152 more as a result of fuel spikes, the group said. The price of Brent crude is hovering above $95 on Tuesday as uncertainty about hostilities lingers. Both Iran and the U.S. are expected to head to Pakistan for a new round of talks before the ceasefire ends on Wednesday.

In the U.S., President Donald Trump contradicted his energy secretary, Chris Wright, over his claim that gas prices might not dip back below $3 a gallon this year.

Wright made the remarks while speaking on CNN, saying he doesn’t know when prices will fall below the mentioned threshold. “That could happen later this year. That might not happen until next year,” Wright said. “But prices have likely peaked, and they’ll start going down,” he added.

Trump was asked about the remarks when talking to The Hill on Monday. He said Wright is “totally wrong.”

Gas prices in the U.S. reached $4.16 per gallon earlier this month before slipping to around $4.05, based on data from the AAA.

Pressure on households resulting from high prices remains significant. A majority of Americans report that gasoline prices are straining family budgets, with 51% describing fuel costs as either a financial hardship or difficult to manage, findings highlighted in polling covered by CBS News.