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.

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.