Brussels, May 28 (SANA) The International Energy Agency (IEA) warned on Thursday that the world is facing what it described as the most severe energy supply crisis in modern history following disruptions linked to the closure of the Strait of Hormuz.
The agency said the strategic waterway, which previously carried around one-fifth of global seaborne oil exports, had become a major bottleneck threatening supply stability and causing significant volatility in global energy markets.
IEA Executive Director Fatih Birol told Euronews that the crisis was expected to reshape global energy policies and investment strategies for years to come.
He said both producing and consuming countries were accelerating efforts to diversify trade routes and energy sources in order to reduce exposure to future supply shocks.
According to the IEA, global investment in oil projects is expected to decline for a third consecutive year as the ongoing U.S.-Israeli-Iranian conflict continues to disrupt supply chains and alter market priorities.
The agency’s World Energy Investment report projected spending on oil projects would fall below $500 billion in 2026 despite relatively high crude prices.
Oil markets have experienced sharp volatility since fighting escalated in the Middle East and disrupted shipping through the Strait of Hormuz, contributing to higher prices and supply shortages in several regions.
The disruptions have pushed governments and energy companies to reassess long-term investment strategies and reduce dependence on traditional supply routes.
Overall investment in the global energy sector is expected to rise slightly to $3.4 trillion in 2026, with most spending directed toward electricity grids, storage systems, low-emission fuels, renewable energy, nuclear power and energy infrastructure projects.
The IEA also said investment in the gas sector could reach around $330 billion, the highest level in a decade, driven largely by liquefied natural gas export projects in the United States and Qatar.
In the Middle East, the conflict has reduced oil export revenues and increased pressure on producers to identify alternative export routes.
The agency previously warned that the cost of repairing energy facilities damaged in Iranian drone and ballistic missile attacks could run into tens of billions of dollars and may reduce foreign investment flows into global infrastructure and energy projects.
R.D/ABD
