IEA Warns of Gas Supply Shocks as Global Markets Face Geopolitical Risks
The International Energy Agency (IEA) has warned governments to strengthen natural gas supply security as global markets face new shocks. The warning comes after two major gas supply crises in the past five years exposed vulnerabilities in global markets.
These crises were triggered by Russia's full-scale invasion of Ukraine in 2022 and the subsequent sharp decline in Russian pipeline gas supplies to Europe, which sent gas prices to record levels. More recently, disruptions to LNG flows through the Strait of Hormuz during the 2026 Middle East conflict highlighted the risks facing economies heavily dependent on imported gas.
The IEA says investments in supply resilience should be viewed like insurance: they carry upfront costs but can be far lower than the economic consequences of being caught unprepared. Physical gas reserves remain a key pillar of supply security, and governments have a range of policy tools at their disposal to strengthen resilience and limit price volatility.
The IEA is calling on governments to deepen dialogue on gas security, improve transparency around reserves and market conditions, conduct regular emergency exercises, and work together to increase LNG market flexibility. It also recommends further examination of voluntary international reserve arrangements.