IEA chief Fatih Birol told France Inter radio that the U.S.-Israel-Iran conflict represents the biggest crisis in history for global energy markets.
The war threatens maritime traffic in the Strait of Hormuz. This critical channel handles approximately one-fifth of the world's oil and LNG flows.
Birol asserted the current situation is more severe than the 1973, 1979, and 2022 oil crises combined. The conflict compounds existing disruptions to Russian gas supplies caused by the Russia-Ukraine war.
This geopolitical turmoil drives oil prices higher and increases sector volatility. These movements directly impact energy-focused ETFs such as VDE.