The head of the International Energy Agency (IEA) said Thursday the world is facing a deepening energy crisis, with oil prices climbing above $120 per barrel and putting mounting pressure on economies.
"The world is facing a major energy and economic challenge," said Fatih Birol at the opening of the COP31-IEA High-Level Energy Transition Dialogue in Paris.
"As the International Energy Agency, we are an organization that puts energy security as a key topic, we are monitoring the situation on a daily basis," Birol added.
The IEA chief said that recent market turmoil has confirmed earlier warnings by the International Energy Agency.
"What is happening now shows that unfortunately, we were right," he said. "The oil markets, gas markets, are going to the big difficulties. Oil prices are now over $120, which is putting a lot of pressure on many countries."
Iran retaliated against the US-Israeli war by not just staging attacks on the US and Israel, but by closing the Strait of Hormuz, sending shockwaves through global energy markets.
"In addition to oil and gas, fertilizers, which are very important for developing countries, petrochemicals, and sulfur, are all interrupted," he said.
- 'Fossil fuel cost crisis now has its foot on the throat of the global economy'
UN climate chief Simon Stiell said that the war in the Middle East is taking a terrible human toll across the region.
The conflict's brutal social and economic impacts are being felt worldwide, as volatile fossil fuel prices put pressure on households, businesses, and government budgets, Stiell said.
"The fossil fuel cost crisis now has its foot on the throat of the global economy, and stagflation on the march," he added.
He said the turmoil has reinforced the economic and security case for renewables, as governments from France to China and India accelerate energy transition plans.
"We must harness it to accelerate a truly global shift," he explained.
Stiell added that while many developing countries aim to expand clean energy and strengthen climate resilience, progress remains constrained by limited financing and mounting debt burdens.
"We must get finance flowing, rapidly. That includes delivering the New Collective Quantified Goal for climate finance in full and on time, and making the roadmap to $1.3 trillion a reality," he said.
"And we must unleash the full power of the Action Agenda – equitably, in both the global North and South," he added.
He also called for scaling up investment in power grids and energy storage to advance the clean energy transition, and for cutting methane emissions to deliver quick climate benefits.
Stiell urged stronger international cooperation ahead of COP31 in Türkiye: "In key sectors right across the Action Agenda, COP31 in Türkiye will provide a global stage to pick up the pace. We must seize this moment. We've no time to lose."
By Handan Kazanci
Anadolu Agency
