Fatih Birol, the Executive Director of the International Energy Agency (IEA), welcomed the temporary agreement between Iran and the United States to end the war but emphasized that the reopening of the Strait of Hormuz must be carried out in a way that assures all parties of the strategic waterway’s security.
Speaking on Thursday, June 18, Birol stated that the crisis of recent months and the closure of the Strait of Hormuz had shaken global energy markets’ confidence in the security of this vital route. Using a metaphor, he remarked, “The vase is broken,” a phrase he explained indicates that previous trust in the stability and security of the Strait of Hormuz is no longer what it used to be.
The IEA chief added that, in the wake of this crisis, many countries are reassessing their energy policies, supply strategies, and long-term planning. According to him, the closure of the Strait of Hormuz during the war demonstrated that one of the world’s most critical energy transit arteries can once again face disruption or complete stoppage.
He stressed that trust is one of the most vital components of global energy markets, and market participants now operate with the knowledge that such a crisis could happen again.
