Loss of energy output in Middle East will take about two years to recover, IEA says

It will take about two years to recover the energy output lost in the Middle East from the conflict there, Fatih Birol, the head of the International Energy Agency, was quoted ‌as saying ⁠on ⁠Friday in an interview with the Neue Zuercher Zeitung newspaper.

"That ​will vary from country to country. In Iraq, for example, it ​will take much longer than in Saudi Arabia. However, we estimate it will take approximately two ​years overall to reach pre-war levels ⁠again," Birol ‌told the Swiss newspaper.

Birol added that ​the ​market was underestimating the consequences of a ⁠prolonged closure of the Strait of Hormuz.


Shipments ​of oil and gas that were already ​en route to their destinations before the war in Iran began have now arrived, mitigating the impact of shortages, he said.

"But no new tankers were loaded in March. There were no ‌new deliveries of oil, gas or fuels to Asian markets. This gap is now becoming ​apparent. If ​the Strait ⁠of Hormuz is not reopened, we must prepare for significantly higher energy prices."

Asked whether the IEA could carry ​out another release of emergency oil reserves after its March move, Birol said the agency was ready to act immediately and decisively.

"We're not there yet, but it's definitely under consideration," Birol said.