economy
More than 40 Middle East energy assets ‘severely damaged,’ IEA chief says
The IEA’s Fatih Birol warned that damage to energy infrastructure across the Middle East would take some time to repair.
TL;DR
- Over 40 energy assets in nine Middle Eastern countries have been severely damaged since the Iran war started.
- Damage to oil fields, refineries, and pipelines will take time to repair, leading to fears of prolonged supply disruptions.
- The Iran war has caused the largest supply disruption in global oil market history and reduced LNG supply by roughly 20%.
- The fallout is equivalent to the 1970s oil crises and the 2022 gas crisis combined.
- Trade disruptions also affect petrochemicals, fertilizers, sulfur, and helium, with serious consequences for the global economy.
- The Strait of Hormuz, through which 20% of global oil and gas passes, has seen shipping come to a virtual halt.
- The IEA is prepared to release more oil to the market if necessary, following a previous release of 400 million barrels.