Israeli military strikes targeted infrastructure in Tehran early Monday morning, according to reports from Iranian and Israeli media, as tensions escalate following Iran’s launch of retaliatory strikes against regional neighbors and its closure of the Strait of Hormuz. Explosions were reported in five areas of the Iranian capital, with local media describing “terrible sounds.”
The strikes come as the world faces a potentially crippling energy crisis, according to Fatih Birol, head of the International Energy Agency (IEA). Birol warned that the current situation is “exceptionally serious,” exceeding the combined impact of the 1973 and 1979 oil crises and the gas crisis triggered by Russia’s invasion of Ukraine. “At that time, in each [oil] crisis, the world has lost about 5 million barrels per day, both of them together 10 million barrels per day,” Birol stated Friday. “And today we lost 11 million barrels – so more than two major oil shocks set together.”
Beyond oil, Birol highlighted significant disruptions to gas markets, noting a loss of 75 billion cubic meters (BCM) following Russia’s invasion of Ukraine, and a further loss of approximately 140 BCM as a result of the current crisis. “So the situation is, if we want to put in a context, this crisis as it stands now, two oil crises and one gas crash put all together,” he said.
The crisis stems from Iran’s response to attacks on its cities and infrastructure. In retaliation, Iran launched strikes against neighboring countries and closed the Strait of Hormuz, a critical waterway for global oil transport. This action prompted a 48-hour ultimatum from U.S. President Donald Trump, demanding Iran reopen the strait or face potential military action, including strikes on Iranian power plants. Iran has threatened “irreversible destruction” of key infrastructure in the Middle East should Trump follow through with a military response.
Iranian President Masoud Pezeshkian responded to Trump’s ultimatum, stating that “threats and terror” were strengthening Iranian unity. The price of oil increased early Monday following Trump’s deadline, and Israel has warned that the conflict will continue for several more weeks.
The IEA is reportedly weighing further fuel releases to mitigate the impact of the crisis, though the extent to which this could offset the significant supply disruptions remains unclear. The situation is also impacting petrochemicals and fertilizers, with Birol warning of lasting consequences for the global economy.
