IEA says Middle East energy output may take two years to recover

ZURICH - It will take about two years to recover the energy ​output lost in the Middle East from the ‌conflict there, Fatih Birol, the head of the International Energy Agency, was quoted as saying on Friday in an interview with ​the Neue Zuercher Zeitung newspaper.

"That will vary from country to country. In Iraq, for example, ⁠it will take much longer than in Saudi Arabia. ​However, we estimate it will take approximately two years overall to reach pre-war levels again," Birol told the Swiss newspaper.

Birol added that the market was underestimating the consequences of a prolonged closure of the Strait of Hormuz.

Shipments of oil and gas that were already en route to their destinations before ‌the ⁠war in Iran began have now arrived, mitigating the impact of shortages, he said.

"But no new tankers were loaded in March. There were no new deliveries of oil, gas ​or fuels to ⁠Asian markets. This gap is now becoming apparent. If the Strait of Hormuz is not reopened, we must prepare for significantly higher ⁠energy prices."

Asked whether the IEA could carry out another release of emergency oil reserves after its March move, ⁠Birol said the agency was ready to act immediately and decisively.

"We're not there yet, but it's definitely under consideration," Birol said.