IEA Chief: Oil and Gas Recovery from Iran War Damage May Take Up to Two Years

International Energy Agency (IEA) Executive Director Fatih Birol has stated that restoring oil and gas production disrupted by the Iran war could take up to two years.

The conflict has resulted in significant damage to energy infrastructure across the Persian Gulf, including oil fields, refineries, and pipelines. The near-closure of the Strait of Hormuz, a critical export route, has further exacerbated the situation, removing millions of barrels from the global market.

Birol emphasized that reopening the Strait alone will not suffice to return production to pre-war levels, as facilities require extensive repairs and operational restarts.

The IEA has previously estimated that the war has led to a loss of up to 13 million barrels per day of oil production, with over 80 energy facilities in the region damaged, more than one-third severely.

The impact is already evident in the physical market, with spot crude prices for immediate delivery surging and refiners in Europe and Asia competing for limited supply.

Birol also noted early signs of demand destruction, including fuel rationing, reduced industrial activity, and rising inflation pressures in energy-importing economies, particularly in emerging markets in Asia and Africa.