As the deadline set by US president Donald Trump for Iran to reopen the Strait of Hormuz expired this morning the head of the International Energy Agency has said the current energy crisis is the worst he has ever experienced.

Speaking to French media Fatih Birol described the current oil and gas crisis triggered by the blockade of the Strait of Hormuz is “more serious than the ones in 1973, 1979 and 2002 together.” Le Figaro newspaper.

“The world has never experienced a disruption to energy supply of such magnitude,” he said in an interview with the French newspaper Le Figaro.

He warned the biggest threat will be to developing nations where impacts will include higher oil and gas prices, higher food prices, and a general acceleration of inflation.

Much of the oil and gas which is transported via the Strait of Hormuz is destined for Asia and the

Hs comments came after the heads of the International Energy Agency, International Monetary Fund, and World Bank Group have agreed to form a coordination group to maximize their institutions’ response to the energy and economic impacts of the war in the Middle East.

Its joint statement said: “The Middle East war has caused major disruptions to lives and livelihoods in the region and triggered one of the largest supply shortages in global energy market history. The impact is substantial, global, and highly asymmetric, disproportionately affecting energy importers, in particular low-income countries. It is already transmitted through higher oil, gas, and fertilizers prices, and is triggering concerns about food prices as well. Global supply chains—including of helium, phosphate, aluminium, and other commodities – are affected, as is tourism due to flight disruptions at key Gulf hubs. The resulting market volatility, weakening of currencies in emerging economies, and concerns about inflation expectations raise the prospect of tighter monetary stances and weaker growth.

“At these times of high uncertainty, it is paramount that our institutions join forces to monitor developments, align analysis, and coordinate support to policymakers to navigate this crisis. This is especially the case for countries that are most exposed to the downstream impacts from the war and those confronting more limited policy space and higher levels of debt. To ensure a coordinated response, we have jointly agreed to form a group that will:

1. Assess the severity of impacts across countries and regions through coordinated data sharing on energy markets and prices, trade flows, fiscal and balance of payments pressures, inflation trends, export restrictions of key commodities, and supply chain disruptions.
2. Coordinate a response mechanism that may include: targeted policy advice, assessment of potential financing needs and related provision of financial support (including through concessional financing), and use of risk mitigation tools as appropriate.
3. Mobilize relevant stakeholders, including other multilateral, regional, and bilateral partners, to deliver a coordinated and efficient support to countries in need.

“The group will work with, and draw on, other international organizations’ expertise as needed.

“We are committed to working together to safeguard global economic and financial stability, strengthen energy security, and support affected countries and people on their path to sustained recovery, growth, and job creation through reforms.”

Global markets were braced for any fallout from Trump’s pledge that should his deadline pass without the reopening that Iranian civilian infrastructure.

Speaking yesterday, Matt Britzman, senior equity analyst, Hargreaves Lansdown said: “Global markets are bracing for a critical day as President Trump’s looming deadline keeps investors on edge, with sentiment holding up better than you might expect given the risk of escalation.

“European stocks were set for a cautious open, with the FTSE 100 expected to open lower and US futures pointing to a dip, but these modest moves suggest investors are positioning carefully rather than fully pricing in a worst-case scenario. Either way, today has the potential to be one of the most volatile trading sessions since the conflict began, with any headlines likely to drive meaningful swings across global markets.

“US stocks closed higher yesterday, but trading volumes were notably light. Normally, that might be put down to an Easter lull, but this time it looks more like investors struggling to decide how to trade the current environment. Futures are pointing to a softer open this afternoon, and we expect pressure to build on stocks as the day progresses if we move closer to Trump’s deadline without any sign of a deal or even a temporary ceasefire. Rate expectations in the US have been just as unsettled as equity markets in recent weeks, with traders now pricing in no change through 2026. The scale of recent swings means it would not be surprising to see expectations shift again later today as events unfold.”

He added: “Oil prices are creeping higher this morning, hovering near levels not seen since 2022. Oil has effectively become the key transmission channel for broader market risk, with moves now feeding directly into everything from bond yields to equity sentiment and even gold prices as investors try to gauge how far the conflict could hit global energy supply. With Iran warning it could escalate attacks on Gulf energy infrastructure if the US targets civilian assets, oil is increasingly acting as the primary driver of volatility heading into today’s deadline.”