IEA chief declares 'biggest energy security threat in history' as Strait of Hormuz double-blockade halts 20 million barrels of daily oil flow and the EU resists windfall tax calls

Fatih Birol, executive director of the International Energy Agency (IEA), told CNBC on Thursday that the world is facing 'the biggest energy security threat in history' — a statement that follows the IEA's agreement in March to release 400 million barrels of emergency oil reserves to partially offset the disruption caused by the closure of the Strait of Hormuz. The strait — through which an average of 20 million barrels of oil and petroleum products were shipped daily before the conflict — is currently under a 'double-blockade' with neither Iran nor the US allowing vessels to enter or exit. The UK Royal Navy confirmed on 22 April that a container ship came under gunfire near Hormuz, adding to three vessel attacks on 18 April. Hundreds of commercial tankers remain stranded on both sides of the strait, with the blockade disrupting approximately 25% of global seaborne oil and 20% of global LNG (liquefied natural gas). In parallel, the European Commission confirmed on 22 April that it will not implement an EU-wide windfall tax on energy companies profiting from the price surge — at least not imminently — despite pressure from member states. Separately, the Commission is establishing an 'observatory' to track aviation fuel production, import, export, and stock levels across the EU to identify potential shortages early and enable targeted distribution measures. International benchmark Brent crude rose to over $103 per barrel on Thursday. Germany has halved its 2026 economic growth forecast to 0.5% — with officials citing energy costs as a primary driver.

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