International Energy Agency (IEA) Executive Director Fatih Birol said the current oil crisis is the worst in history.
The severity of the crisis threatens global economic stability by disrupting the primary transit route for Middle East energy exports. A blockade of the Strait of Hormuz and targeted attacks on energy infrastructure have created a supply shock that exceeds previous historical benchmarks.
Birol said the current energy crisis is worse than the 1973, 1979, and 2022 crises combined [1, 3]. This escalation follows the start of the war on Iran in early 2024, which has fundamentally destabilized global markets [2].
Oil prices have jumped more than 50% since the start of the conflict [1]. The IEA and the International Monetary Fund (IMF) are monitoring the volatility as regional instability continues to threaten the flow of crude oil [1, 2].
"The Iran war has created the worst oil crisis in history," Birol said in April 2026 [2]. The assessment is shared by other financial institutions; a Goldman Sachs report also said the world is facing the worst oil crisis in history [3].
The crisis is driven by the physical blockade of the Strait of Hormuz, a critical chokepoint for global oil shipments, and systemic attacks on energy infrastructure across the Middle East [1, 2]. These factors have combined to create a level of market distress that surpasses the oil shocks of the 20th century.
“"We are facing the worst oil crisis in history."”
The convergence of a physical blockade at the Strait of Hormuz and active warfare targeting infrastructure removes a significant portion of global supply from the market. Unlike previous shocks that were often driven by policy decisions or diplomatic embargoes, this crisis is rooted in the physical inability to move oil, making it more difficult for IEA member nations to offset the deficit through strategic reserves.
