Oil Recovery May Take Up to Two Years Amid Iran Conflict

The International Energy Agency's executive director, Fatih Birol, predicts that it may take up to two years for oil and gas production to recover from disruptions caused by the Iran war. The damage to oil fields, refineries, and pipelines across the Persian Gulf has had a significant impact on global energy supplies.

The Strait of Hormuz, a critical energy shipping route, has been nearly closed due to the conflict. This has resulted in hundreds of millions of barrels of crude and refined fuels being withheld from the market.

Birol emphasized that simply reopening the Strait would not immediately restore pre-war production levels, as the damage is extensive and will take time to repair. He also warned that emerging economies, particularly those in Asia and Africa, will be severely affected by the prolonged conflict, leading to demand destruction through rationing, reduced activity, and rising inflation.