Global Energy Security Hangs in Balance Over Strait of Hormuz

International Energy Agency Executive Director Fatih Birol has expressed concern over the global energy security situation. If the Strait of Hormuz, a key waterway between Iran and Oman, does not reopen soon, oil supplies could be severely disrupted.

The Strait carries about one-fifth of the world's energy shipments and has been mostly blocked since February 28 due to conflict in the region.

Birol noted that despite sharp price increases, several factors have moderated the rise. These include China's stockpile of over 1 billion barrels of oil, its conservation efforts through increased use of electric vehicles and public transport, and a coordinated IEA release of up to 400 million barrels of oil.

However, Birol emphasized that these fixes 'can't last forever.'