'The largest energy security threat in history' is about push oil prices further up, IEA warns
No new energy shipments have been loaded in April, signalling a worsening disruption that could intensify the global energy and economic impact, IEA Executive Director Fatih Birol said on Monday.
By Doloresz Katanich with AFP & AP
Published on 14/04/2026 - 9:10 GMT+2
April could prove a tougher month than March for energy markets and the global economy because of the Middle East war, the head of the International Energy Agency said on Monday in Washington while speaking at the Atlantic Council.
While March saw the delivery of cargo from the region "loaded well before the crisis started," IEA Executive Director Fatih Birol emphasised that "during the month of April, nothing has been loaded".
Oil prices do not yet reflect the severity of the unprecedented supply crisis caused by the Iran war, he added.
"I think soon we will see that they will converge, which is, of course, an extremely sensitive issue for the global economy," he said.
Birol warned that "as of today, we lost 13 million barrels per day. Tomorrow may be bigger. In terms of gas, Russia's invasion of Ukraine, we lost about 75 [billion cubic meters], and today we are much higher than that".
He called the Iran war and its implications the largest ever energy crisis.
"The longer the disruption lasts, the more severe the problem becomes," he told reporters after a meeting at the International Monetary Fund.
Birol added that the IEA is "ready to act" with additional releases of reserves if needed.
His comments came as he met leaders of the IMF and World Bank as part of a group recently established to coordinate responses to the economic fallout from the war.
Birol said the agency was monitoring energy facilities in the region, noting that of more than 80 affected facilities, more than a third have been severely damaged. Getting them back online could take up to two years.
He reiterated that the world is facing a major energy security challenge, adding that "no country is immune to this problem".
IMF chief Kristalina Georgieva said on Monday that there is a need to understand the full scale of the impact from infrastructure damage caused by the war.
World Bank President Ajay Banga said the institutions are preparing for different scenarios depending on how long and how severe the conflict becomes.
The IMF has made up to $50bn (€42.5bn) in financing available, while the World Bank is ready to put forward up to $25bn (€21.25bn), both institutions previously said.
Banga added on Monday that if hostilities persist, the bank could make available as much as $60bn (€51bn) in total over the coming six months.
US-Israeli strikes targeting Iran, beginning on 28 February, triggered Tehran to retaliate by virtually blocking the Strait of Hormuz, a key waterway for energy and other shipments.
Last Wednesday, the US and Iran agreed on a two-week truce to allow negotiations to go ahead, but weekend talks in Islamabad failed, leading Trump to impose a naval blockade of the Strait.
OPEC output tumbled by 7.89 million barrels a day in March to 20.79 million barrels, the 12-nation cartel said on Monday, as the closure of the Strait severely crimped production.
"Disruptions to shipping operations in the region raised persistent concerns about regional supply flows, while strong buying of prompt spot market barrels, production cuts, and declarations of force majeure further supported the upward price momentum," OPEC said.
The organisation said demand appears steady this year but cut its forecast for the current quarter, citing the war.
