Business30 March, 20261 min read
IEA Chief Warns April Energy Supply Losses Will Double March
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April oil supply losses expected to double March levels. Crisis is worse than 1973, 1979, and 2022 gas shortage.
Worsening Energy Crisis
Fatih Birol warned global energy supply losses would double in April compared to March. The loss of 12 million barrels per day exceeds the shocks of 1973 and 1979. The IEA released 400 million barrels from reserves, but Birol said the real cure is reopening the Straits of Hormuz.
Strait of Hormuz Key
Reopening the Strait of Hormuz emerged as a consensus priority. Asia was feeling the brunt, but Europe would face disruptions by April or early May. The IEA did not rule out energy rationing in several countries.
Economic Fallout Looms
Birol warned inflation would rise and growth would slow, especially in emerging economies. Energy rationing was a real possibility. Global energy markets are totally interdependent, with regional shortages spilling over.