rki.news | Anadolu Agency
PARIS: The global energy system is facing an “extremely fragile situation” due to geopolitical tensions and concentrated supply chains, the head of the International Energy Agency has warned.
IEA Executive Director Fatih Birol said markets are increasingly dependent on a limited number of key players, making them highly vulnerable to disruption. Speaking to France Inter, he highlighted instability around the Strait of Hormuz as a major risk to global energy flows.
He warned that any disruption could have severe global consequences, calling the situation “absurd, but real.” Birol said the current system is deeply unstable and difficult to repair once damaged.
He noted that geopolitical developments, including policy signals from major global leaders, continue to drive uncertainty. The war in Ukraine has already reshaped oil and gas flows, especially in Europe.
Birol said Russia remains a key supplier despite sanctions, adding volatility to prices. He compared the situation to the 1970s oil shocks but said today’s crisis is broader, affecting multiple energy sectors at once.
He warned of higher inflation and slower growth, with emerging economies most exposed. He added that restoring stability could take at least two years, while the crisis may accelerate the global shift toward cleaner energy sources.