The International Energy Agency (IEA) has urged governments, businesses and households to cut fuel consumption through remote work, reduced travel and energy-efficient practices as the Middle East conflict continues to disrupt global oil supply.
In a recent report, the agency warned that the ongoing war has triggered what it describes as the largest oil supply shock in history, pushing crude prices to about $112.2 per barrel and tightening global markets.
According to the IEA, oil shipments through the Strait of Hormuz have dropped sharply—from around 20 million barrels per day before the conflict to minimal levels—intensifying supply concerns.
Demand-side measures key to easing pressure
The agency stressed that supply interventions alone are not enough, urging immediate demand-side action to reduce costs and stabilise markets.
Road transport, which accounts for roughly 45% of global oil demand, is a primary focus. The IEA said practical steps such as working from home, lowering speed limits by at least 10km/h, and switching to public transport can significantly cut fuel use.
It also recommended car-sharing, improved driving efficiency, and better logistics in freight and delivery operations.
Cut air travel, prioritise essential fuel use
Beyond roads, the agency called for reduced air travel where alternatives exist to ease demand for jet fuel.
It further advised prioritising liquefied petroleum gas (LPG) for essential needs like cooking, while encouraging cleaner alternatives to reduce reliance on limited supplies.
Industries facing LPG shortages were urged to switch to alternatives such as naphtha, freeing up gas for households.
Government role crucial
The IEA said governments must lead through targeted policies, incentives and public sector action. It warned that well-directed support for vulnerable consumers is more effective than broad subsidies.
Commenting on the crisis, Fatih Birol said the situation could worsen without swift resolution.
“The impacts on energy markets and economies are set to become more severe,” he said.
Record emergency oil release
To stabilise markets, IEA member countries have agreed to release 400 million barrels from emergency reserves—the largest coordinated stock draw in the agency’s history.
The agency maintained that while demand cuts cannot fully replace lost supply, they can help reduce costs, ease market pressure and ensure fuel availability for essential use.
