Over 40 energy assets in West Asia have suffered severe damage due to the Iran war, according to the International Energy Agency (IEA). The IEA Executive Director, Fatih Birol, stated that the disruption in oil and gas supplies would impact all countries. He compared the current situation to the oil crises of the 1970s and the recent natural gas crisis post the Russia-Ukraine conflict.
Addressing journalists in Canberra, Birol highlighted that the ongoing disruptions in West Asia have already led to a loss of around 11 million barrels per day. He emphasized that the impact extends beyond oil and gas, affecting crucial sectors like petrochemicals, fertilizers, and trade in commodities like sulphur and helium.
The IEA has taken measures to alleviate supply shocks by releasing a record 400 million barrels from emergency oil reserves. Birol mentioned ongoing discussions with governments in Asia and Europe for potential additional oil releases if needed. However, he stressed that the ultimate solution lies in reopening the vital trade route through the Strait of Hormuz, which is currently disrupted due to the war.
Birol cautioned that if the crisis escalates further, it poses a significant threat to the global economy, emphasizing the need for swift resolution to prevent prolonged repercussions.
