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The world is currently experiencing a severe energy crisis, surpassing the combined impact of the 1970s oil shocks and the Ukraine war, according to Fatih Birol, Executive Director of the International Energy Agency (IEA). Speaking at a media event in Australia, Birol warned that the energy crunch prompted by the US-Israel war on Iran has exceeded the 1973 and 1979 oil shocks and gas shortages stemming from Russia's 2022 invasion of Ukraine.Birol stated that the crisis is equivalent to two oil crises and one gas crash combined. He noted that the effective closure of the Strait of Hormuz and attacks on energy facilities have reduced global oil supplies by about 11 million barrels per day (bpd), more than double the combined shortfalls of the 1970s crises. Additionally, liquefied natural gas (LNG) supplies have been reduced by about 140 billion cubic meters, compared to a shortfall of 75bcm in the aftermath of Ukraine's invasion by Russia.At least 40 energy facilities across nine countries have been severely damaged in the conflict, according to the IEA chief. Birol emphasized that the global economy is facing a major threat and expressed hope that the issue will be resolved soon.Birol also expressed concern that the scale of the crisis had not been fully understood, which prompted him to speak publicly about the situation. The IEA has proposed measures to reduce energy consumption, including facilitating remote working and carpooling, and lowering speed limits on motorways.The IEA chief is in consultation with different countries about releasing more strategic oil reserves if needed. However, he emphasized that the single most important solution to the crisis is to unblock the Strait of Hormuz, which usually carries about one-fifth of global oil and LNG supplies.

US President Donald Trump has taken to social media to mock UK Prime Minister Keir Starmer, sharing a Saturday Night Live (SNL) skit that depicts Starmer panicking at the prospect of a call with Trump. The skit, which aired on the premiere of the new British version of SNL, shows Starmer, played by George Fouracres, trying to avoid a call with Trump.The video was shared on the same evening that Trump and Starmer spoke about the escalating tensions in the Middle East and the US-Israel war on Iran. During their call, the two leaders focused on the need to reopen the Strait of Hormuz, which has been effectively blocked by Iran since the US and Israel launched strikes on February 28.The closure of the strait has sent oil prices soaring, creating the biggest energy crisis since the 1970s. Trump has repeatedly criticized Starmer for not doing enough to support the US efforts to break the blockade, accusing him of being a 'coward' and saying he is 'disappointed' in him.Starmer has asserted that any attempt to reopen the Strait of Hormuz needs careful consideration and a viable plan, and that his number one priority is to protect British interests and de-escalate tensions. The UK government has given authorization for the US to use its military bases to carry out strikes on Iranian missile sites that were attacking ships in the Strait of Hormuz.

President Donald Trump has announced a significant diplomatic pause in the escalating conflict with Iran, instructing the US military to delay any strikes against Iranian power plants and energy infrastructure for a five-day period. The announcement comes as Trump claims both nations have reached "major points of agreement" and are seeking a "complete and total resolution" of hostilities in the Middle East.This decision follows a tense 48-hour ultimatum issued by Trump on Saturday, in which he threatened to "obliterate" Iranian power plants if Tehran did not reopen the Strait of Hormuz. The Strait is a critical global chokepoint, handling approximately one-fifth of the world's oil and liquefied natural gas; its closure has already triggered a severe global energy crisis and spiked oil prices.Speaking from Florida, Trump stated that Iran is eager to make a deal and that his envoys, including Steve Witkoff and Jared Kushner, have been engaged in talks with a "respected" Iranian leader. For a resolution to materialize, Trump asserted that Iran must relinquish its enriched uranium stockpile, and he suggested the strategic Strait of Hormuz would be reopened very soon if an agreement is reached.The prospect of de-escalation provided immediate relief to global financial markets. Wall Street stocks saw early gains on Monday, while oil prices—which had soared since the onset of hostilities—experienced a sharp decline. The easing of tensions is viewed as a potential "off-ramp" for the war, which analysts suggest may be an attempt by Trump to secure a dignified exit from the conflict.While Iran has not officially confirmed the talks, its Foreign Ministry suggested the pause is a tactical maneuver to lower energy prices. However, the Islamic Revolutionary Guard Corps warned that any attack on Iranian power plants would trigger a massive retaliation, including strikes on US bases and economic infrastructure. Analysts believe the likelihood of Iran refusing this offer is remote, as the country seeks to avoid further devastation.

The military campaign launched by the United States and Israel against Iran has entered its 24th day, bringing the region to a precarious juncture. As US President Donald Trump’s 48-hour ultimatum for Iran to reopen the Strait of Hormuz approaches its expiration at 23:44 GMT on Monday, Tehran has issued stern warnings regarding the potential targeting of its electricity grid. In response, Iran has vowed to strike the energy and water systems of its Gulf neighbors, raising fears of a broader regional energy crisis.The conflict is already having tangible repercussions on the global economy. Financial markets are reacting sharply to the escalating tensions, with stocks in China and Hong Kong on track for their worst performance in nearly a year. The uncertainty has fueled stagflation fears, prompting UK Prime Minister Keir Starmer to convene an emergency meeting to address the mounting economic fallout.In Iran, the situation remains volatile. The Israeli military has conducted a wide-scale wave of strikes targeting infrastructure across Tehran, resulting in powerful explosions reported in the central, southern, and eastern parts of the capital. Verified footage shows massive columns of fire and smoke rising over Karaj following an air attack. The Iranian Revolutionary Guard Corps (IRGC) has retaliated by threatening attacks on power plants in Israel and those supplying electricity to US bases, while also targeting a turbine engine production site in Qom used for drone components.The conflict has also spilled over into Gulf Cooperation Council (GCC) nations. Saudi Arabia’s Ministry of Defence confirmed that two ballistic missiles were launched toward Riyadh, with one intercepted and the other falling in an uninhabited area. The UAE reported debris injuries in the al-Shawamekh area, while Bahrain confirmed attacks on the US Fifth Fleet. In Qatar, seven people were killed in a helicopter crash, and Kuwait has formally protested airspace violations to the International Civil Aviation Organization.The human toll continues to rise. In Israel, alerts were triggered across Jerusalem and central Israel following explosions, with the casualty toll from attacks on Dimona and Arad climbing to at least 180 injured. In Lebanon, authorities report that at least 1,029 people have been killed since March 2, with over 100 of the victims being children. In Iraq, at least 60 people have been killed, primarily among pro-Iran Popular Mobilisation Forces.

UK Prime Minister Keir Starmer has indicated that the government is considering providing support for household bills next winter, as the energy price shock triggered by the Iran conflict shows no signs of abating. Speaking to the Commons liaison committee, Starmer emphasized the need to examine 'every lever that's available' to help households cope with the cost of living impact. The government is reportedly discussing contingency plans at an emergency Cobra meeting, which will be attended by the governor of the Bank of England. Starmer suggested that any support would likely be targeted at the poorest households, rather than a universal bailout, which he acknowledged would be expensive. Ministers are also exploring means-testing support when the next energy price cap comes to an end in June, as well as in the autumn when energy consumption and bills are higher. 'We're looking at in the first instance what happens when the current price cap ends, which is the end of June,' Starmer said. The prime minister warned that despite US President Donald Trump's decision to postpone airstrikes on Iran's power plants, the energy crisis could continue for months to come. 'All of our focus and energy has to be in the swift de-escalation, but we've got to plan on the basis that it could go on for some time,' he said. In addition to support for household bills, the government is considering giving the Competition and Markets Authority (CMA) 'further teeth' to prevent companies from exploiting the crisis through price gouging or profiteering.

The global energy crisis caused by the war in Iran and the fallout from the Ukraine conflict is equivalent to the combined force of the twin oil shocks of the 1970s, according to the head of the International Energy Agency (IEA).Fatih Birol, the IEA's executive director, warned that the growing fallout could be seriously compounded by interruptions to the 'vital arteries of the global economy', including petrochemicals, fertilisers, sulphur, and helium.The crisis, which started with bombings against the regime in Tehran on 28 February, already represents the loss of 11m barrels of oil per day and about 140 bcm of gas. This is comparable to the losses seen in the 1973 and 1979 oil crises, which saw a loss of about 5m barrels of oil per day each, and Russia's 2022 invasion of Ukraine, which removed about 75bn cubic metres (bcm) of natural gas from international markets.Birol said that at least 40 energy assets in the Gulf region had been severely or very severely damaged, so even an end to the conflict would not immediately restore energy supply. He also noted that the Asia Pacific region had been badly affected by the closure of the Strait of Hormuz, through which about 20% of the world's oil supply is transported.The IEA has taken emergency measures, including the release of 400m barrels of oil from strategic reserves, the largest emergency measure in its history. Birol said he is consulting world leaders about another possible release of emergency oil supply, noting that the initial move was only 20% of overall stocks.

The ongoing conflict involving Iran has created a severe energy shockwave across Asian nations, prompting governments to implement extraordinary measures to cope with the economic fallout. Fuel rations have been introduced in several countries as energy supplies become increasingly constrained and volatile.In response to the economic pressure, governments have begun distributing cash handouts to citizens and businesses to mitigate the impact of rising energy costs. These emergency interventions highlight the far-reaching economic consequences of the geopolitical tensions in the Middle East.Asian markets, heavily dependent on energy imports from the region, are experiencing significant price volatility and supply chain disruptions. The situation has forced policymakers to balance immediate economic relief with long-term energy security strategies.

The ongoing conflict between the US and Iran has significant implications for the UK economy, with the potential to plunge the country into a severe energy crisis. The Strait of Hormuz, a critical shipping lane for oil, is now rendered unsafe due to Iranian drones and mines, threatening to disrupt global fuel supplies. Historically, the UK has faced similar challenges, such as during the Suez crisis 70 years ago, when petrol rationing was introduced. Former BP executive Nick Butler warns that if the crisis persists, the UK could be just weeks away from needing to ration fuel, with critical users like emergency services being prioritized. The economic consequences of such a crisis are far-reaching. A sustained energy crisis could push up average British household energy bills by £500, according to the Resolution Foundation thinktank. This would further exacerbate the cost of living crisis, which has already seen inflationary shocks and a backlash against incumbents. The UK government faces difficult decisions. Chancellor Rachel Reeves has already taken steps to help 1.7 million households reliant on oil for heating and hot water, whose bills have doubled. However, her warning that financial help will be targeted at lower earners suggests that harder decisions lie ahead. In the long term, the UK must consider investing in net zero initiatives to reduce dependence on fossil fuels. Modelling by the government's expert Climate Change Committee suggests that if Britain sticks to its net zero path, even a substantial oil shock would raise energy bills by only 4% by 2040. However, implementing such policies in the midst of a crisis is a challenging task.