ZURICH, (Reuters): It will take about two years to recover the energy output lost in the Middle East due to the ongoing conflict, according to Fatih Birol, head of the International Energy Agency, 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 said. He added that the market is underestimating the consequences of a prolonged closure of the Strait of Hormuz.
Shipments of oil and gas that were already en route before the war in Iran began have now arrived, helping to ease immediate shortages. However, no new tankers were loaded in March, and there have been no fresh deliveries of oil, gas, or fuels to Asian markets. This supply gap is now becoming evident.“If the Strait of Hormuz is not reopened, we must prepare for significantly higher energy prices,” Birol warned.
Asked whether the IEA would release more emergency oil reserves following its move in March, Birol said the agency is ready to act immediately if needed.“We’re not there yet, but it’s definitely under consideration,” he said.
