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WFH to Limited AC Use: How Countries Are Dealing With Iran War Energy Shock
The Iran war has disrupted global energy markets, with a blockade in the Strait of Hormuz contributing to price pressures. The IEA notes that about 70 countries have adopted policy measures, while IEA members agreed to release emergency oil reserves. India and other nations are implementing a mix of consumer and administrative steps to manage demand and stabilise supply, as diplomacy continues in Pakistan.
Why It Matters
The energy shock affects households and economies worldwide. Policy responses show how countries balance demand reduction with supply stability in times of geopolitical tension.
Timeline
7 Events
IEA notes unprecedented disruption in global fuel markets
April 25, 2026
The conflict in the Middle East has triggered an unprecedented disruption to global fuel markets, tightening supply and placing significant pressure on consumers and economies worldwide.
Diplomatic talks: Iran-US envoys arrive in Islamabad for second round
April 25, 2026
Weeks after an initial round of talks failed in Pakistan, Iranian and US envoys arrived in Islamabad for a second round of negotiations, as a fragile ceasefire holds in parts of the Middle East.
Administrative actions to curb demand and stabilize supply
April 25, 2026
Governments have restricted official travel, capped fuel prices, increased subsidies and lowered energy taxes.
Consumer-focused measures rolled out globally
April 25, 2026
Governments are encouraging work from home, setting temperature limits for air conditioners, shifting to online classes, promoting public transport and, in some cases, mandating reduced vehicle use and lower speed limits.
India implements energy subsidies and efficiency measures
April 25, 2026
In India, authorities cut excise duty on petrol and diesel, capped fuel retailer margins and imposed taxes on fuel exports. The Centre has also limited industrial use of natural gas, accelerated the rollout of piped natural gas to replace LPG, and rationalised commercial LPG consumption.
IEA agrees to release 400 million barrels from emergency reserves
April 25, 2026
IEA member countries have agreed to release 400 million barrels of oil from emergency reserves, the largest such action in the agency's history.
IEA tracker: at least 70 countries adopt policy measures
April 25, 2026
The International Energy Agency (IEA) tracker shows at least 70 countries, including Mexico, Canada, Australia, Japan, China and India, have adopted policy measures in response to the unfolding energy crisis.