The Iran war and its devastating impact on Asian energy markets should serve as a catalyst for developing much stronger emergency energy response capabilities across the Asia-Pacific region, the head of the International Energy Agency has urged. Fatih Birol, speaking in Canberra, said the region’s heavy dependence on Gulf oil imports had made it the most severely affected by the Hormuz closure. He described the overall crisis as equivalent to the combined force of the 1970s twin oil shocks and the Ukraine gas emergency.
Birol said the Asia-Pacific region needed stronger regional strategic reserve cooperation, better emergency coordination mechanisms among its major energy-importing nations, and faster joint response capabilities for future supply disruptions. Japan, South Korea, China, India, and Australia all had major stakes in Gulf energy security, yet regional frameworks for coordinating their emergency responses remained relatively underdeveloped compared to their importance.
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. At least 40 Gulf energy assets have been severely damaged, and the Hormuz strait — through which approximately 20 percent of global oil flows — remains closed. The IEA deployed 400 million barrels from strategic reserves on March 11 in its largest emergency action.
Birol confirmed further releases were under consideration and said consultations with governments across three continents were ongoing. He called for demand-side policies including remote work, lower speed limits, and reduced air travel. He met with Australian Prime Minister Anthony Albanese and said Australia had a natural leadership role to play in developing stronger regional energy security frameworks in the Asia-Pacific.
Trump’s 48-hour ultimatum to Iran to reopen the strait expired without result, and Tehran threatened retaliatory strikes on US and allied energy and water infrastructure. Japan indicated it could contribute minesweeping military assets if a ceasefire was achieved, and Birol said this demonstrated the kind of regional security engagement that was needed. He concluded that the Iran crisis must accelerate the development of stronger Asia-Pacific energy emergency response capabilities that the region had needed for a long time.