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Paris: Executive Director of International Energy Agency (IEA), Fatih Birol, said restoring energy production in the Middle East following the recent regional tension could take around two years.
In press remarks on Friday, Birol noted that recovery timelines would vary from country to country, with some requiring more time than others, but estimated that a return to pre-escalation levels could take approximately two years overall.
He added that markets are not fully pricing in the potential impact of a prolonged closure of Strait of Hormuz, noting that oil and gas shipments that were already en route before the outbreak of the conflict have reached their destinations, helping to ease supply shortages.
Birol pointed out that no new tankers were loaded during March, with no fresh shipments of oil, gas, or fuel reaching Asian markets, making supply gaps more apparent.
He also warned that failure to reopen the Strait of Hormuz could lead to a sharp rise in energy prices.
Regarding the possibility of further releases from strategic oil reserves following similar measures taken in March, Birol said the agency stands ready to act swiftly and decisively if needed.
Oil prices have fallen below $100, as markets bet on a political de-escalation in the region that could bring an end to the most severe energy shock in years.
