The International Energy Agency’s executive director has warned that Asia-Pacific nations are disproportionately bearing the brunt of the energy crisis triggered by the Iran war. Fatih Birol, speaking in Canberra, said the region’s dependence on Gulf oil imports has made it especially vulnerable to the closure of the Strait of Hormuz. He called on countries across the region to cooperate in addressing the crisis rather than adopting defensive national strategies.
The conflict in Iran, which began with US and Israeli strikes on February 28, has removed 11 million barrels of oil per day and 140 billion cubic metres of gas from world markets. Birol compared this to the combined losses of the 1970s oil shocks and the Ukraine gas crisis, calling the current situation two oil crises and one gas crisis rolled into one. At least 40 energy assets across the Gulf have been severely damaged, making a rapid recovery unlikely.
The Strait of Hormuz, through which about 20 percent of global oil flows, has been shut to commercial vessels following attacks on shipping. This has caused supply disruptions for fuel-dependent economies across Asia and has also affected European markets, particularly for diesel and jet fuel. Birol said increased production from Canada and Mexico could help offset some losses in Europe, but the Asia-Pacific gap would be far harder to fill.
The IEA authorized the largest reserve release in its history — 400 million barrels of oil — on March 11, and Birol signaled that further releases may follow if needed. Japan has indicated it could participate in military minesweeping operations if a ceasefire is achieved, reflecting the growing security dimension of the energy crisis. Australia, Japan, and South Korea have been criticized by US President Trump for not contributing more actively to efforts to secure the strait.
Birol held meetings with Australian Prime Minister Anthony Albanese and said the IEA was engaged in active consultations with governments across Asia, Europe, and North America. He warned that any country attempting to hoard fuel domestically was exacerbating a problem that only global cooperation could solve. Reopening the Hormuz strait, he reiterated, remains the single most important step toward restoring stability.