Global Energy Security Faces 'Biggest Crisis' in History, IEA Warns

Kathmandu. The global community is currently standing on the brink of a massive energy crisis. International Energy Agency Executive Director Fatih Birol has stated that the world is facing the "biggest threat" to energy security in history, according to a report by Reuters.

According to him, the sharp rise in energy prices is likely to lead to a decrease in demand. "We will see a decline in demand due to the impact of price hikes, and in some cases, measures taken or that may be taken by governments will also have an effect," he said.

"As of today, we have already lost 13 million barrels of oil supply per day," he added further.

Oil prices have surged due to the Iran war, which has effectively blocked the Strait of Hormuz, a vital maritime route through which 20 percent of the world's oil and gas consumption passes.

Experts suggest that even if the Strait of Hormuz were to reopen immediately, it would take time for supply chains to normalize through this route.