IEA Chief Highlights Energy Security Amid Iran-Israeli Conflict

The International Energy Agency, led by Fatih Birol, is prepared to release more oil from reserves if necessary due to the ongoing U.S.-Israeli war with Iran disrupting global energy. Despite already releasing 400 million barrels, Birol emphasizes that diversification is crucial for maintaining energy security and addressing global impacts.

The International Energy Agency, headed by Fatih Birol, has indicated readiness for a potential second release of oil reserves if the ongoing U.S.-Israeli conflict with Iran further exacerbates the global energy situation. This comes after an unprecedented coordinated release of 400 million barrels just last month, aimed at soothing volatile oil markets.

At a recent Atlantic Council event in Washington, Birol highlighted the severe energy disruption caused by the conflict, marking it as the worst on record. He noted significant damage to over 80 oil and gas facilities across the Middle East, which has driven benchmark oil prices close to $100 per barrel. While acknowledging the temporary relief provided by oil reserves, Birol stressed that it only mitigates the 'pain' from production shutdowns and the closure of the Strait of Hormuz.

Amidst these challenges, the IEA is collaborating with the World Bank and International Monetary Fund to address economic impacts on energy importers, especially low-income countries. Birol also underlined Iraq's plight, where over 90% of government revenue stems from oil exports, now hindered. Emphasizing energy diversification as key, he advised diversifying energy sources, suppliers, and trade routes.

(With inputs from agencies.)