The IEA warns that the global energy market is entering a period of high volatility due to the risk of supply disruptions, and says it is prepared to release more oil from its reserves to stabilize the market.
Last Thursday, Fatih Birol, the director-general of the International Energy Agency (IEA), warned that the global energy market had entered a period of volatility and pledged to continue releasing strategic reserves if supply disruptions persisted.
At the Canada Growth Summit 2026 in Toronto, Birol said the market was beset by strong instability, with the Iran conflict continuing to cause a shortage of millions of barrels of oil per day. The IEA head predicted that supply would only slowly recover, even after the conflict ends.
To address the situation, the IEA director stated that the agency had devised a plan to release more oil from its strategic reserves if supply remained limited. To date, the IEA has released 20% of its available oil reserves in order to curb the rise in crude oil prices.
At this event, Birol urged Canada, the fourth-largest oil producer in the world, to diversify its energy export markets. He noted that countries seeking reliable energy partners in the context of the Iran conflict would undoubtedly view Canada as an obvious option.
Earlier in the day, during his visit, the IEA Executive Director met with Canadian Prime Minister Mark Carney and other senior government officials in Ottawa to discuss the energy crisis. The discussions focused on analyzing the implications of disruptions to maritime traffic in the Strait of Hormuz, as well as assessing Canada’s potential to become a leading energy exporter on a global scale to compensate for the global supply shortage.
