'The largest energy security threat in history' is about push oil prices further up, IEA warns

April could prove a tougher month than March for energy markets and the global economy because of the Middle East war, the head of the International Energy Agency said on Monday in Washington while speaking at the Atlantic Council.

While March saw the delivery of cargo from the region "loaded well before the crisis started," IEA Executive Director Fatih Birol emphasised that "during the month of April, nothing has been loaded".

Oil prices do not yet reflect the severity of the unprecedented supply crisis caused by the Iran war, he added.

"I think soon we will see that they will converge, which is, of course, an extremely sensitive issue for the global economy," he said.

Birol warned that "as of today, we lost 13 million barrels per day. Tomorrow may be bigger. In terms of gas, Russia's invasion of Ukraine, we lost about 75 [billion cubic meters], and today we are much higher than that".

He called the Iran war and its implications the largest ever energy crisis.

"The longer the disruption lasts, the more severe the problem becomes," he told reporters after a meeting at the International Monetary Fund.

Birol added that the IEA is "ready to act" with additional releases of reserves if needed.

His comments came as he met leaders of the IMF and World Bank as part of a group recently established to coordinate responses to the economic fallout from the war.

Birol said the agency was monitoring energy facilities in the region, noting that of more than 80 affected facilities, more than a third have been severely damaged. Getting them back online could take up to two years.

He reiterated that the world is facing a major energy security challenge, adding that "no country is immune to this problem".

• IEA urges swift cuts in oil demand, encourages remote work, less air travel

• IEA: Global economy faces ‘major, major threat’ because of Iran war

IMF chief Kristalina Georgieva said on Monday that there is a need to understand the full scale of the impact from infrastructure damage caused by the war.

World Bank President Ajay Banga said the institutions are preparing for different scenarios depending on how long and how severe the conflict becomes.

The IMF has made up to $50bn (€42.5bn) in financing available, while the World Bank is ready to put forward up to $25bn (€21.25bn), both institutions previously said.

Banga added on Monday that if hostilities persist, the bank could make available as much as $60bn (€51bn) in total over the coming six months.

US-Israeli strikes targeting Iran, beginning on 28 February, triggered Tehran to retaliate by virtually blocking the Strait of Hormuz, a key waterway for energy and other shipments.