Iran war energy shock ‘worse than 1970s crisis’, warns IEA

The global energy crisis triggered by the US-Israel war with Iran is “very severe” and could surpass the oil shocks of the 1970s, International Energy Agency (IEA) chief Fatih Birol warned on Monday, as tensions around the Strait of Hormuz continue to threaten global supply chains.

Speaking at the National Press Club in Canberra, Birol said the agency is closely monitoring market conditions and remains prepared to act in coordination with member countries if disruptions intensify. “If it is necessary, of course, we will do it. We will analyse the markets and consult with member countries,” he said.

Earlier this month, IEA members agreed to release a record 400 million barrels of oil from strategic reserves to stabilise prices after the conflict triggered a surge in global crude markets.

The warning comes as geopolitical tensions have risen after US President Donald Trump issued a stark ultimatum to Iran to “hit and obliterate” Iranian power plants within 48 hours if Tehran does not reopen the Strait of Hormuz, a critical route for global oil shipments.

In a post on Truth Social, Trump said failure to restore access to the waterway would prompt strikes on key Iranian infrastructure. The threat marks a sharp escalation, particularly as it follows his recent remarks that the US was considering “winding down” military operations in the region.

Despite that signal, Washington continues to bolster its military presence, deploying additional Marines and naval forces to the Middle East.

Israel has also indicated an intensification of its campaign, with Defence Minister Israel Katz saying strikes on Iran would increase significantly. The Israeli military said it has already targeted more than 200 sites over the weekend in coordinated attacks on Iran and Hezbollah positions in Lebanon.

Hostilities have continued on the ground, with Iranian missile strikes hitting southern Israel. In Arad, at least 74 people were injured in what emergency services described as a mass casualty incident, while another missile struck a building in Dimona, home to Israel’s nuclear programme.

Meanwhile, Iran has stepped up internal security measures, detaining at least 25 individuals accused of sharing information about strike damage with foreign networks.