The International Energy Agency (IEA) has said over 40 energy assets have been damaged in the Middle East due to the United States–Israeli war against Iran.
IEA’s Executive Director, Fatih Birol, said this on Monday, according to a Bloomberg report.
This comes as global oil supply worsens by the day due to the war in the region that has lasted over three weeks.
What they are saying
The IEA chief said more than 40 energy assets across nine countries in the Middle East have been “severely or very severely” damaged by the war.
He warned that this could potentially prolong disruptions to global supply chains even after the conflict ends.
- The damage means it will take some time for oil fields, refineries, and pipelines to come back online, Birol said at Australia’s National Press Club in Canberra.
- The effect of the current disruptions is equivalent to the two major oil crises in the 1970s and the 2022 natural gas crisis after Russia invaded Ukraine, “all put together,” Birol said.
- “Not only oil and gas, but some of the vital arteries of the global economy — such as petrochemicals, fertilizers, sulfur, and helium — have had their trade disrupted, which will have serious consequences for the global economy,” he said.
More insights
Since February 28, 2026, when the war began, the conflict has affected the entire energy supply chain due to the closure of the vital Strait of Hormuz, leading to surging crude, natural gas, and fuel prices.
Asia is at the forefront of this crisis because of its heavy reliance on crude from the region, Birol said. When asked about China’s decision to curb fuel exports, he said the whole world needs to face the energy crisis together.
- “Every country first looks at its own domestic interest, but in such a situation, imposing serious export restrictions without justification might not earn positive recognition from the international community,” the IEA chief said.
Last week, the Paris-based organisation proposed measures to help energy importers trim demand.
- Further oil reserves can be released as necessary if the Iran war further disrupts global energy markets in the coming days and weeks, Birol said. However, with shipping across the Strait of Hormuz at a near halt, the only true solution to fuel supply disruptions is the reopening of the major trade route, he added.
Backstory
Last week, the Ministers of Foreign Affairs of 12 countries called for an end to attacks on oil facilities and sought the reopening of the Strait of Hormuz.
- This was disclosed in a joint statement issued on Thursday following a consultative ministerial meeting of foreign ministers from a group of Arab and Islamic countries regarding the ongoing war in the Middle East.
- After their meeting the previous day in Riyadh, the ministers condemned attacks on Gulf Cooperation Council countries, the Hashemite Kingdom of Jordan, the Republic of Azerbaijan, and the Republic of Türkiye.
The development came after oil facilities were hit in the region, with QatarEnergy suffering a major blow.
What you should know
The President of the United States of America, Donald Trump, recently issued a 48-hour ultimatum to Iran to fully reopen the Strait of Hormuz or face military strikes on its power plants.
- This announcement was made via a post on Trump’s Truth Social account and shared by the official X account of the White House.
- The warning came amid rising tensions in the Middle East and growing fears over disruptions to global energy supplies as Iran continues to block the strategic waterway.
Trump stressed that the United States would act decisively if Iran failed to comply, highlighting the potential targeting of Iranian power facilities.
