The head of the International Energy Agency (IEA) said today (17 April) that it could take about two years for the Middle East to recover energy output lost during the war on Iran, reports Reuters.
“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,” Fatih Birol told the Swiss newspaper Neue Zuercher Zeitung.
Birol warned that the market is underestimating the potential impact 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.”
When asked whether the IEA could initiate another release of emergency oil reserves following its March move, Birol said the agency stood ready to act immediately and decisively
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