European economies are facing a tightening of diesel and jet fuel supplies as a direct consequence of the Iran war and the closure of the Strait of Hormuz, the head of the International Energy Agency has warned. Fatih Birol, speaking in Canberra, said changes to diesel and jet fuel availability were already being felt across Europe, even as increased production from Canada and Mexico offered some offsetting relief. He described the overall crisis as equivalent to the combined force of the 1970s oil shocks and the Ukraine gas crisis.
Birol explained that the war in Iran, which began with US and Israeli strikes on February 28, had removed 11 million barrels of oil per day from global supply alongside 140 billion cubic metres of gas. The closure of the Strait of Hormuz — the world’s most important oil shipping chokepoint — had cut off approximately 20 percent of global oil flows from international markets. At least 40 Gulf energy assets had been severely damaged, further complicating any prospect of quick supply restoration.
The IEA authorized the release of 400 million barrels from strategic petroleum reserves on March 11, the largest emergency action in the agency’s history. Birol pushed governments to adopt demand-reduction measures including expanded remote work, lower motorway speed limits, and fewer commercial flights. He confirmed the IEA was consulting with governments across Europe, Asia, and North America about whether further reserve releases were needed.
The Asia-Pacific region has been hardest hit by the Hormuz closure, given its dependence on Gulf oil imports. Japan has indicated it could deploy military assets for minesweeping operations if a ceasefire is achieved, while Australia, Japan, and South Korea have been criticized by US President Trump for insufficient engagement in securing the strait. Birol said increased North American output could help narrow Europe’s supply gap but would not fully compensate for overall global losses.
Iran threatened retaliatory strikes on 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 stressed the need for unified global action. He concluded that no region — not Asia, not Europe, not the Americas — would escape the consequences of a prolonged crisis, making international cooperation an urgent necessity.
