Global Energy Crisis Deepens: Oil Prices Plummet After Ceasefire, IEA Warns of Unprecedented Disruption

Welcome to Carbon Brief’s DeBriefed, your essential guide to the week’s key developments in climate change.

Energy Markets in Turmoil After Ceasefire Announcement

Following the announcement on Tuesday of a two-week ceasefire agreement between Iran and the US and Israel, oil prices dropped below $96 per barrel, according to the Associated Press. However, price volatility resumed just hours later when a Saudi Arabian oil pipeline was hit, as reported by Reuters.

IEA Chief Warns of ‘Unprecedented’ Energy Crisis

In an interview with Le Figaro, Fatih Birol, Executive Director of the International Energy Agency (IEA), described the current energy crisis as worse than the disruptions of 1973, 1979, and 2022 combined. He stated that the world has “never experienced a disruption to energy supply of such magnitude.”

Polluters Profit as Renewables Gain Ground

The Guardian highlighted how the world’s worst polluters are benefiting from higher fossil fuel prices, though it noted that global trends favor renewables. The South China Morning Post reported that experts anticipate an acceleration in energy source diversification as the war continues to disrupt global supplies.

Global Climate Goals Under Threat

Experts warned The Guardian that the UK’s plans to open new oil and gas fields in the North Sea would “imperil” international climate goals. The warning came as the UK government pushed back against speculation that it would approve new drilling projects, according to Sky News.

India Withdraws COP33 Hosting Bid

The Indian government has withdrawn its offer to host COP33, stating it was following a review of its commitments for 2028, as reported by Climate Home News.

EU Braces for ‘Long-Lasting’ Energy Shock

The Financial Times covered remarks by Dan Jørgensen, EU Energy Commissioner, who warned that the bloc is preparing for a “long-lasting” energy shock stemming from the Iran war. Reuters also reported that five EU countries have called for a windfall tax on energy companies’ profits in response to rising fuel prices.

US Budget Proposal Targets ‘Green New Scam’

The Los Angeles Times reported that US President Donald Trump’s 2027 budget proposal includes substantial cuts to energy and environment programs, targeting what it calls the “green new scam.”

Climate Disasters Escalate Worldwide

• Since 26 March, at least 148 people have died and 216 have been injured in Afghanistan due to heavy rains, floods, earthquakes, and landslides, according to Reuters.
• The International Union for Conservation of Nature (IUCN) declared emperor penguins officially in danger of extinction after the “mass drowning” of chicks due to melting sea ice, as reported by The Guardian.

UK EV Market Hits Record High

The UK registered 86,120 battery electric vehicle (BEV) sales in March, accounting for 22.6% of the total car market, according to the Society of Motor Manufacturers and Traders (SMMT).

Latest Climate Research Findings

• More than a quarter of the world’s population will face more frequent and severe hot-and-dry extreme events by 2100 under current climate policies, according to Geophysical Research Letters.
• Nearly 10,000 species will face increased wildfire exposure by the end of the century, as reported in Nature Climate Change.