Fatih Birol, the head of the International Energy Agency, has made clear that the demand-reduction measures he has been recommending — including lower highway speed limits and expanded working from home — are not merely optional suggestions but essential actions that every government must take immediately. Speaking in Canberra, the IEA chief said the crisis caused by the Iran war, equivalent to the twin 1970s oil shocks and the Ukraine gas emergency combined, required emergency action on both the supply and demand sides simultaneously. He said any government that was not acting on both fronts was not responding seriously to the crisis.
The conflict began February 28 with US and Israeli strikes on Iran and has since removed 11 million barrels of oil per day and 140 billion cubic metres of gas from world markets. These losses exceed those of all previous energy crises combined, including the 1970s oil shocks that caused global recessions. The Strait of Hormuz, through which about 20 percent of global oil flows, remains closed to commercial shipping following attacks on tankers.
The IEA released 400 million barrels of oil from strategic reserves on March 11 — the largest emergency action in its history — and is considering further releases. Birol said the agency was consulting with governments in Europe, Asia, and North America about the appropriate timing and scale of any additional deployment. He acknowledged that reserves could only ease, not resolve, the underlying supply emergency.
Demand-side measures, Birol explained, were equally critical. Lower speed limits would reduce fuel consumption immediately and at no cost to governments. Expanded working from home would reduce commuter fuel demand, while cuts to commercial aviation would reduce jet fuel consumption. All three measures had been used during past energy emergencies and remained some of the most effective tools available for rapidly reducing demand.
At least 40 Gulf energy assets have been severely damaged, meaning supply restoration will be slow even after the conflict ends. Iran threatened retaliatory strikes on US and allied energy and water infrastructure after Trump’s ultimatum to reopen Hormuz expired. Birol warned that every barrel of fuel saved through demand-side action was a barrel that could be redirected to where it was most desperately needed — and that governments had no excuse not to act.