OSLO: The International Energy Agency has warned that escalating oil supply disruptions from the Middle East are set to intensify in April, with significant economic repercussions expected in Europe.
IEA Executive Director Fatih Birol said the closure and disruption of the Strait of Hormuz has already curtailed supplies, with more than 12 million barrels of oil lost since the onset of the US-Israel conflict with Iran.
Speaking in a podcast with Nicolai Tangen, head of Norway’s sovereign wealth fund, Birol warned that oil losses in April could be twice as high as in March, compounding existing shortages of liquefied natural gas (LNG).
“The impact will come through inflation and slower economic growth in many countries,” he said, adding that the full effect of supply disruptions is only beginning to materialize as previously contracted shipments continue to arrive.
Birol highlighted that shortages of jet fuel and diesel are emerging as the most immediate concern. While Asian markets are already feeling the strain, Europe is expected to face similar pressures in April and May.
The IEA is now considering an additional release from strategic reserves after member countries previously agreed to release a record 400 million barrels of oil to stabilise markets.
According to Birol, the current energy crisis could surpass previous shocks, including the 1973 Oil Crisis, the 1979 Oil Crisis, and supply disruptions following the Russia-Ukraine War—combined.
He noted that around 40 major energy assets in the Middle East have been damaged since the conflict began, warning that restoring them will take time.
“We are heading towards a major, unprecedented disruption—the biggest in history so far,” Birol cautioned, underscoring growing global concerns over energy security and economic stability.
By Reuters
