The International Energy Agency (IEA) warns Europe has approximately six weeks of aviation fuel reserves, with potential flight cancellations if Iranian oil supply disruptions continue.
IEA Warns of Energy Crisis
Europe currently possesses aviation fuel reserves sufficient for around six weeks. However, continued disruptions to oil supplies due to conflict with Iran could lead to flight cancellations, warned IEA Executive Director Fatih Birol on Thursday.
Birol described the current situation as “the biggest energy crisis we have ever faced” in an extensive interview with the Associated Press.
“Dire Straits” Become Reality
“In the past, there was a band called ‘Dire Straits’,” Birol stated. “Now we are facing a truly critical situation that will have serious consequences for the global economy. The longer it lasts, the worse it will affect economic growth and inflation worldwide.”
Rising Energy Prices and Regional Impact
The consequences will include “higher gasoline prices, higher gas prices, and high electricity prices.” Some parts of the world will “suffer more than others,” with Japan, South Korea, India, China, Pakistan, and Bangladesh identified as being on the front lines of the energy crisis.
Developing Nations Most Vulnerable
“The countries that will suffer the most are not those whose voices are heard the loudest, but primarily developing countries – poorer nations in Asia, Africa, and Latin America. Then it will reach Europe and the Americas,” Birol said.
Threat to Global Aviation
Birol cautioned that if the Strait of Hormuz does not reopen, Europe “will soon hear news that some flights from city A to city B may be canceled due to a lack of aviation fuel.”
Concerns Over Iran’s Toll System
Birol opposed Iran’s implementation of a “toll point” system for some ships passing through the Strait of Hormuz, allowing passage for a fee. He argued that allowing this to become more permanent would risk creating a precedent applicable to other key waterways, such as the Strait of Malacca in Asia.
“If we change this once, it may be difficult to reverse this change. It will be difficult for the fee system to be applied here, but not there,” he explained. “I would like oil to flow unconditionally from point A to point B.”
Conflict and Oil Supply Disruption
The conflict initiated on February 28th by the US and Israel with Iran has caused a significant increase in oil prices, particularly due to Iran’s retaliatory closure of the Strait of Hormuz, through which approximately 20% of the world’s oil is normally transported. (PAP)
