The head of the International Energy Agency warned that the global energy crisis will not ease until the Strait of Hormuz fully reopens, calling it the single most important step to limit further economic damage. The conflict involving the United States, Israel and Iran has caused what the agency describes as the largest oil supply disruption in history, with Persian Gulf production sharply reduced and global inventories falling at a record pace. Even with a coordinated release of 400 million barrels of emergency reserves, conditions could still worsen.

Fatih Birol said the shock is spreading beyond fuel markets, raising fertilizer costs and threatening higher food prices. Countries are responding by boosting domestic energy production, expanding renewable power as well as nuclear and coal, and reconsidering long term supply partnerships. The crisis is expected to permanently reshape global energy flows, with nations placing greater emphasis on security of supply rather than price alone.

Asian economies, heavily dependent on Middle Eastern oil and gas, face a profound reckoning. China appears more insulated due to large oil reserves and the rapid adoption of electric vehicles, driven by energy security concerns. Meanwhile, jet fuel shortages remain severe, particularly in Europe, raising the prospect of prolonged flight reductions and higher ticket prices as the uncertain global outlook continues.