Energy blackout fears see global ‘work from home where possible’ order issued | World | News

Escalating conflict in the Middle East has sparked what experts fear is the worst oil supply crisis ever; It has led to calls globally for people to “work from home where possible” and warnings of “increasingly severe” disruptions. The war has almost completely blocked the Strait of Hormuz, a lifeline for 20 million barrels per day, about 20% of the world’s oil, since late February 2026, following intense US-Israeli air strikes that escalated into open hostility towards Iran.

Tanker movements fell by more than 90% and Gulf producers (Saudi Arabia, Iraq, Kuwait, UAE, Qatar) were forced to cut production by at least 10 million barrels per day as storage tanks filled and exports stopped. This shock, the biggest shock in the history of the oil market and overshadowing the 1973 embargo, pushed crude oil prices to over $100 per barrel, while diesel, jet fuel and LPG faced even sharper increases. Brent crude oil fluctuated in the $95-$105 range until mid-March 2026 due to sharp fluctuations and fears of prolonged outages.

IEA member countries responded by releasing 400 million barrels from emergency reserves on March 11 (the largest draw ever) to soften the blow. However, Executive Director Fatih Birol emphasized that supply actions alone cannot close this gap.

Fatih Birol, “The war in the Middle East is creating a major energy crisis, including the largest supply disruption in the history of the global oil market.” he said. Fatih Birol added: “Unless a quick solution is found, the effects on energy markets and economies will become increasingly severe.”

The agency’s new report today presents ten proven, fast-acting demand-side measures focusing on road transport (45% of global oil demand), but also covering aviation, cooking fuels and industry. Governments should encourage adoption through policy, regulation, incentives and focused assistance to vulnerable households, avoiding indiscriminate subsidies.

Key actions include working from home where possible to reduce fuel use during commuting for eligible jobs and reducing motorway speed limits by at least 10 km/h to save fuel in cars, vans and trucks. They also recommend encouraging the use of public transport, car sharing, ecological driving and efficient transport practices.

In addition, the implementation of the license plate rotation scheme in big cities reduces traffic congestion and consumption. It is recommended to limit non-essential air travel to ease the jet fuel burden. It is vital to transition LPG from transport to primary cooking and promote electric alternatives, allowing the industry to replace petrochemical feedstocks and deliver rapid efficiency gains.

If widely implemented, these steps would significantly reduce costs, ease market pressures, and preserve fuels for critical needs until Hormuz flows resume. Many Asian and European countries have already implemented work-from-home rules, shortened weeks, school closures and price controls in line with IEA recommendations.

Fatih Birol emphasized active diplomacy with major producers and consumers. Unless tensions are quickly reduced, the crisis risks spiraling inflation, disruption of the supply chain, fuel rationing and widespread power outages.

Reopening safe passage across the Bosphorus is vital, but immediate and aggressive reduction of demand is the most effective shield against intensifying energy chaos and economic damage.