IEA urges demand cuts as war-driven energy surge strains consumers

Paris— The International Energy Agency on Friday proposed measures including working from home and avoiding air travel to ease pressure on oil markets, as energy prices surge following the US-Israel war with Iran and raise global inflation concerns.

The agency said governments, businesses and households could take immediate steps to reduce fuel demand and mitigate the impact of rising costs, following its decision earlier this month to release record volumes of oil from emergency reserves.

In its latest guidance, the IEA said practical actions such as increased remote work, lower highway speed limits and reduced reliance on air travel could help curb fuel consumption in the short term. The proposals are aimed at softening the burden on consumers facing higher energy bills.

The agency framed the recommendations as part of a broader strategy to complement supply-side interventions, emphasizing coordinated action across sectors to stabilize markets.

The IEA earlier agreed to release 400 million barrels of oil from strategic reserves, marking the largest such move in its history. The United States is contributing the majority of the supply, reflecting its central role in global energy coordination efforts.

IEA Executive Director Fatih Birol said the agency remains in close contact with key governments, including major producers and consumers, as part of ongoing energy diplomacy efforts.

“We have recently launched the largest ever release of IEA emergency oil stocks,” Birol said in a statement, adding that discussions with governments are continuing to address market volatility.

The spike in oil prices linked to the conflict has intensified concerns over inflation worldwide, as higher energy costs ripple through transport, manufacturing and household expenses.

Birol said the latest report provides “a menu of immediate and concrete measures” that can be implemented quickly to shield consumers, highlighting the importance of reducing demand alongside boosting supply in times of crisis.