Energy crisis from Iran war already larger than past major shocks, IEA says

The IEA's executive director says the fuel shortfall tied to the war with Iran has already exceeded the combined losses of the 1973, 1979 and 2022 crises, and leaders from the IEA, IMF and World Bank will meet next Monday to discuss coordination and support.

The International Energy Agency's executive director, Fatih Birol, said the fuel shortfall linked to the war with Iran is already larger than the combined losses of the 1973, 1979 and 2022 crises. He reported current losses of about 11 million barrels of oil per day and about 140 billion cubic metres of gas. Reuters has reported shutdowns of around 12 million barrels per day from the Middle East after the closure of the Strait of Hormuz. The disruption has pushed some crude prices to record highs. Key reported points: - The IEA estimates losses at roughly 11 million barrels of oil per day and about 140 billion cubic metres of gas. - Fatih Birol said about 40 energy assets in the Gulf have been severely or very severely damaged, which limits a quick restoration of supply. - Reuters reported that shutdowns of roughly 12 million barrels per day amount to about 12% of world oil supply after the Strait of Hormuz was closed. - Some European and Asian refiners paid record highs near $150 a barrel for certain crude grades. - IMF chief Kristalina Georgieva said the war is likely to raise inflation and slow global growth. Summary: The reported supply losses are straining global fuel markets and pose heightened risks for developing economies through higher energy and food prices and increased inflation. Leaders from the IEA, IMF and World Bank have agreed to form a coordination group and will meet next Monday to discuss policy responses and potential financing measures.