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Work from home, drive less, fly less: IEA’s roadmap to tackle oil shock as Iran war enters fourth week

With flows through the Strait of Hormuz sharply reduced, IEA warned that demand-side measures will be critical to stabilise prices and protect vulnerable economies, particularly in developing countries.
March 20, 2026 / 16:26 IST
People wait for their turn to get fuel at a petrol station, amid the U.S. and Israeli conflict in Iran, in Karachi, Pakistan March 6, 2026. REUTERS/Akhtar Soomro
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The International Energy Agency urges urgent fuel consumption cuts as West Asia war causes historic oil supply disruption via the Strait of Hormuz. Measures include remote work, lower speed limits, reduced air travel, and prioritizing LPG for essential uses.

The International Energy Agency has issued an urgent call for governments, businesses and households to cut fuel consumption as the ongoing war in West Asia triggers what it describes as the largest supply disruption in the history of the global oil market. With flows through the Strait of Hormuz sharply reduced, the agency warned that demand-side measures will be critical to stabilise prices and protect vulnerable economies, particularly in developing countries.

The Strait of Hormuz, which normally carries about 20 percent of global oil consumption, has seen supplies drop to a trickle. Around 20 million barrels per day of crude oil and petroleum products typically pass through the route, and the disruption has pushed crude prices above 100 dollars per barrel while sending refined fuels such as diesel, jet fuel and LPG even higher. Despite releasing emergency reserves, the agency cautioned that supply-side interventions alone will not be enough.

“We have recently launched the largest ever release of IEA emergency oil stocks. But in the absence of a swift resolution, the impacts on energy markets and economies are set to become more and more severe. The measures in these challenging times can help to preserve fuels for essential uses until normal flows resume," IEA Executive Director Fatih Birol said.

In its latest advisory, the IEA outlined a set of immediate measures aimed at reducing oil demand across sectors. It recommended remote work wherever possible to cut commuting-related fuel use and called for lowering highway speed limits by at least 10 kilometres per hour to improve fuel efficiency. Governments have also been urged to promote public transport, carpooling and even alternate-day car use schemes to ease congestion and reduce consumption.

The agency also flagged aviation as a key area where demand can be trimmed, suggesting that air travel should be reduced where viable alternatives exist. These steps, it noted, could significantly lower pressure on global fuel markets in the short term.

With LPG supplies expected to tighten, the IEA stressed the need to prioritise its use for essential household cooking. It urged governments and industries to shift LPG away from transport and non-essential uses and promote alternatives. “Where possible, switch to other modern cooking solutions, and encourage electric cooking and other modern options to reduce reliance on LPG," the agency said.

The report also highlighted the role of industry, particularly in countries like India, in easing the strain on LPG supplies. It recommended that industrial facilities switch from LPG to alternative feedstocks such as naphtha to free up supplies for households. “Governments can lead by example through public sector measures, regulatory action and targeted incentives while ensuring that support for consumers is timed appropriately and focused on those most in need," the agency added.

Earlier this month, IEA member countries agreed to release 400 million barrels of oil from emergency reserves, marking the largest coordinated stock draw in the agency’s history. However, it warned that without a reduction in demand, the current disruption could continue to drive up prices and strain economies worldwide.

Moneycontrol World Desk
first published: Mar 20, 2026 04:26 pm

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