Energy Transition

World facing ‘biggest-ever’ energy crisis – and more top energy stories

Published May 12, 2026 · Updated May 12, 2026

Maltese flagged liquid natural gas tanker Pearl LNG sits alongside gas storage facilities, following arrival from the US port of Ingleside, at Bilbao port, northern Spain.

The Middle East conflict has caused significant disruption to global oil and gas supply.

Roberto Bocca

Head, Centre for Energy and Materials; Member of the Executive Committee, World Economic Forum

This round-up brings you the key stories from the energy sector over recent weeks.

Top energy news: World ‘facing biggest-ever energy crisis’; Countries gather for first international fossil fuel phaseout meeting; South Korea and Australia partner on energy supply chain.

For more on the World Economic Forum’s work in the energy space, visit the Centre for Energy and Materials.

1. World ‘facing biggest energy crisis in history’

Disruption caused by the conflict in the Middle East has left the world facing the biggest energy crisis in history, according to the head of the International Energy Agency (IEA).

At a conference in Paris, Fatih Birol said oil and gas markets were undergoing “big difficulties”, with oil prices that have risen above $120 putting pressure on countries around the globe.

With Brent crude prices at a four-year high at the end of April amid concerns the conflict could worsen, Birol underscored that the world is facing a “major economic and energy challenge”.

About a fifth of the world’s oil and gas supply has been affected by the disruption in the Strait of Hormuz, the vital maritime passage that connects the Gulf with the Arabian Sea.

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As countries move to reduce exposure to oil and gas markets, the war is “supercharging” the global shift to renewable energy, according to UN climate chief Simon Stiell.

2. More than 50 countries agree to work on fossil fuel trade measures

As the energy crisis driven by the Middle East conflict continues, nations gathered in Colombia for a first-of-its-kind meeting dedicated to phasing out fossil fuels.

More than 50 countries agreed to work on trade measures aimed at cutting fossil fuel demand, the Financial Times reports. Attendees also pledged to work on financial reforms to help tackle debt and subsidy systems that keep them reliant on fossil fuels.