Iran War Disruptions May Take Up to Two Years to Recover

The International Energy Agency's Executive Director, Fatih Birol, warned that it could take up to two years for oil and gas production to recover from disruptions caused by the Iran war. The damage has affected oil fields, refineries, and pipelines across the Persian Gulf.

The Strait of Hormuz, a vital energy shipping route, was nearly closed due to the conflict, depriving the market of hundreds of millions of barrels of crude and refined fuels.

According to Birol, the recovery will be gradual, and it's misleading to think that production will immediately return to pre-conflict levels once the Strait reopens. The recovery of liquefied natural gas supply may even lag further, with some terminals taking longer than two years to normalize.