IEA Warns Middle East Oil Crisis Threatens Global Economy

The International Energy Agency (IEA) has warned that the escalating oil crisis in the Middle East could pose serious risks to the global economy, as it considers releasing emergency stockpiles to stabilise markets.

Speaking in Canberra, IEA Executive Director Fatih Birol said the agency is in talks with governments across Asia and Europe on the possible release of additional oil reserves if market conditions worsen due to the ongoing Iran conflict.

“If it is necessary, of course, we will do it,” Birol said, noting that the agency would continue to assess market conditions and coordinate with member countries before taking action.

He cautioned, however, that releasing stockpiles would only provide temporary relief.

“A stock release will help to comfort the markets, but this is not the solution. It will only help to reduce the pain in the economy,” he added.

The warning comes amid rising concerns that disruptions to oil supply routes in the Middle East could trigger wider economic instability, with energy prices already under pressure due to heightened geopolitical tensions.

The IEA said it would continue close consultations with key stakeholders as the situation evolves, stressing the need for coordinated global efforts to manage potential supply shocks.