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In reaction to Strait of Hormuz blockade, IEA suggests nations reduce oil demand
25/3/2026
News
The blockade of the Strait of Hormuz in the Persian Gulf is ‘the greatest threat to global energy security in history’, Secretary-General of the International Energy Agency (IEA) Fatih Birol said to Spanish newspaper El Pais.
According to an Al Jazeera media report, Birol said that Iran’s blockade, in reaction to air strikes by the US and Israel, has amounted to the removal of 11mn b/d from world markets, greater than the two oil shocks in the 1970s.
He also said that the impact on gas of the blockade amounts to a reduction of 140bn m3, twice that of the blockade of Russian exports after its invasion of Ukraine.
‘In the absence of a swift resolution, the impacts on energy markets and economies are set to become more and more severe’ Birol said at a 23 March event in Australia, according to Al Jazeera.
As a result, an IEA report published on 20 March offers nations ideas of how to reduce demand for oil and gas.
An IEA press statement about the report referred to the importance of reopening the Strait of Hormuz, as well as IEA plans to release 400mn barrels of strategic stocks. It then went on to say: ‘Supply-side measures alone cannot fully offset the scale of the disruption. Addressing demand is a critical and immediate tool to reduce pressure on consumers by improving affordability and supporting energy security.’
The report’s suggestions, which include increasing home working, reducing motorway speeds and avoiding air travel, focus primarily on road transport, which accounts for around 45% of global oil demand, but also cover aviation, cooking and industry.
About the report, Birol said it ‘provides a menu of immediate and concrete measures that can be taken on the demand side by governments, businesses and households to shelter consumers from the impacts of this crisis. It draws on the IEA’s decades of expertise in this field and highlights measures that have been proven to work in practice in different contexts.’
The report is titled Sheltering from oil shocks – https://www.iea.org/reports/sheltering-from-oil-shocks. The IEA has also published examples of national actions taken recently – https://iea.blob.core.windows.net/assets/2aa0c404-fed1-4ee1-80db-6ab5b6016266/Overview-Trackinggovernmentemergencymeasures2026.pdf
As New Energy World went to press, Iran issued a statement via its mission to the United Nations about passage through the Strait, which might indicate an easing of restrictions. It read: 'Non-hostile vessels, including those belonging to or associated with other States, may – provided that they neither participate in nor support acts of aggression against Iran and fully comply with the declared safety and security regulations – benefit from safe passage through the Strait of Hormuz in coordination with the competent Iranian authorities.
IEA’s top 10 measures for nations to reduce oil demand
1. Work from home where possible. Displaces oil use from commuting, particularly where jobs are suitable for remote work.
2. Reduce highway speed limits by at least 10 km/h. Lower speeds reduce fuel use for passenger cars, vans and trucks.
3. Encourage public transport. A shift from private cars to buses and trains can quickly reduce oil demand.
4. Alternate private car access to roads in large cities on different days. Number-plate rotation schemes can reduce congestion and fuel-intensive driving.
5. Increase car sharing and adopt efficient driving practices. Higher car occupancy and eco-driving can lower fuel consumption quickly.
6. Efficient driving for road commercial vehicles and delivery of goods. Better driving practices, vehicle maintenance and load optimisation can cut diesel use.
7. Divert LPG use from transport. Shifting bi-fuel and converted vehicles from LPG to gasoline can preserve LPG for cooking and other essential needs.
8. Avoid air travel where alternative options exist. Reducing business flights can quickly ease pressure on jet fuel markets.
9. Where possible, switch to other modern cooking solutions. Encouraging electric cooking and other modern options can reduce reliance on LPG.
10. Leverage flexibility with petrochemical feedstocks and implement short-term efficiency and maintenance measures. Industry can help free up LPG for essential uses while reducing oil consumption through quick operational improvements.
