“This is indeed the biggest crisis ​in history,” International Energy Agency says

Soon after the US and Israel launched Operation Epic Fury targeting Iran on February 28, the global energy supply was disrupted.

In response to the attack, Iran closed off the Strait of Hormuz, through which approximately 20% of global oil and liquefied natural gas trade passes, sending shockwaves throughout the world.

The price of oil skyrocketed from below $70 before the war began to a peak of $119 per barrel in March, the BBC reports.

Ceasefire set to expire

The ceasefire between Iran and the US is set to expire Wednesday evening, US time, sparking fears that turmoil in the global oil markets will reignite after the price of a barrel dropped to $89.

Inflation in the US jumped to 3.3% in March, up from 2.4% in both January and February, with the price of gasoline and fuel oil driving the increase.

The crisis is already significant, and if you are still not sure exactly how big the problem is, you only need to listen to the head of the International Energy Agency (IEA).

In an interview with France Inter Radio on Tuesday, the director of the IEA, Fatih Birol, bluntly said:

“This is indeed the biggest crisis in history.”

Bigger than three historic crises combined

With the flow of ships through the Strait of Hormuz disrupted and Russian gas supplies to Europe curtailed due to the war in Ukraine, the world is facing a perfect storm.

According to Reuters, Birol told Le Figaro earlier this month that the current crisis is worse than the crises in 1973, 1979 and 2022 combined.

In an attempt to dampen the turmoil, the IEA has agreed to release 400 million barrels of oil, but it

In March, the IEA agreed to release a record 400 million barrels of oil from strategic stockpiles to combat rising oil prices caused by the US-Israeli war with Iran.

Sources: The BBC, Reuters, France Inter Radio, Trading Economics

This article is made and published by Jens Asbjørn Bogen, who may have used AI in the preparation