Iran war energy crisis equal to 70s twin oil shocks and fallout from Ukraine war, says IEA chief

Fatih Birol, executive director of the International Energy Agency, has warned that the energy crisis caused by war in Iran is as severe as the combined impact of the 1970s oil shocks and Russia's invasion of Ukraine. Birol said world leaders initially underestimated the effect on global energy markets from Iran bombings and the closure of the Strait of Hormuz, a critical chokepoint for global oil transit. The disruption threatens what he described as "vital arteries of the global economy," including supplies of petrochemicals and fertilizers that depend on stable energy flows. The comparison to the 1970s oil crises—which triggered severe global recessions and inflation—underscores the scale of economic risk now facing oil-dependent nations and industries worldwide. The warning suggests that prolonged supply disruptions could compound inflationary and recessionary pressures already weighing on the global economy.