Fatih Birol, the executive director of the International Energy Agency, has stressed that the record release of strategic petroleum reserves is a bridging measure designed to buy time — not a permanent solution to the global energy crisis caused by the Iran war. Speaking in Canberra, the IEA chief said the crisis had grown to the equivalent of the combined force of the 1970s twin oil shocks and the Ukraine gas disruption, and that reserve releases alone could not address losses of that magnitude. The only real destination, he said, was the restoration of supply through the reopening of the Hormuz strait.
The IEA released 400 million barrels of oil from member nations’ strategic reserves on March 11 — the largest emergency action in the organization’s history. Birol confirmed that this represented only 20 percent of available stocks and that further releases were being discussed with governments across three continents. He said the decision on any additional deployment would be based on careful analysis of market conditions.
The conflict began February 28 with US and Israeli strikes on Iran, leading to the closure of the Strait of Hormuz and widespread damage to Gulf energy infrastructure. Oil losses have reached 11 million barrels per day and gas losses 140 billion cubic metres — far exceeding the combined losses of the 1970s oil crises and the Ukraine gas disruption. At least 40 Gulf energy facilities have been severely damaged, meaning recovery will take considerable time even after fighting ends.
Birol called on governments to reduce energy demand through measures including expanded remote working, lower highway speed limits, and reduced commercial flights. He expressed concern about the trend of nations in Asia stockpiling fuel domestically, saying this was counterproductive to the global effort. He also noted that increased Canadian and Mexican oil production could offer some partial relief to European markets.
Iran threatened retaliation against US and allied energy and desalination infrastructure following Trump’s 48-hour ultimatum to reopen the strait. Birol met with Australian Prime Minister Anthony Albanese and emphasized the need for sustained international engagement. His message to all governments: the reserves bridge is necessary and being used — but the world must not confuse the bridge with the destination, which can only be a secure and open Hormuz strait.