Fatih Birol, executive director of the International Energy Agency (IEA), announced that more than 40 energy assets across nine Middle Eastern countries have been 'severely or very severely' damaged since the Iran war began, raising concerns about prolonged supply disruptions in the region [1]. The damaged assets include oil and gas fields, refineries, and pipelines, and Birol emphasized that repairs will take considerable time [1]. The conflict, which started on February 28, has led to the largest supply disruption in the history of the global oil market, according to the IEA [1]. Liquefied natural gas (LNG) supply has also been reduced by approximately 20% since the onset of hostilities [1].
Birol compared the fallout from the Iran war to the combined impact of the two major oil crises of the 1970s and the 2022 gas crisis, highlighting that not only oil and gas but also petrochemicals, fertilizers, sulfur, and helium trade have been interrupted, posing serious consequences for the global economy [1]. The Strait of Hormuz, a critical maritime corridor through which about 20% of global oil and gas typically passes, has seen shipping virtually grind to a halt since the conflict began [1].
U.S. President Donald Trump threatened to 'obliterate' Iran's power plants if Tehran did not fully reopen the Strait of Hormuz within 48 hours, underscoring the geopolitical tensions surrounding energy infrastructure [1]. In response, Iran's Parliament spokesperson Mohammad Baqer Qalibaf warned that critical infrastructure and energy facilities in the Gulf region could be 'irreversibly destroyed' if Iranian power plants were attacked [1].
Birol stressed that reopening the Strait of Hormuz is the 'single most important' solution to the current global energy crisis, with Asia being particularly vulnerable to the energy shock [1]. The IEA stands ready to follow up its historic release of 400 million barrels of oil to the market on March 11, and Birol stated, 'If it is necessary, of course, we will do it' [1].
CONCLUSION
The Iran war has caused severe damage to Middle Eastern energy assets and led to historic disruptions in oil and LNG supply, with global trade flows through the Strait of Hormuz nearly halted. The IEA warns of serious economic consequences and stands ready to intervene further if necessary. Market participants are closely watching geopolitical developments, as the reopening of the Strait is seen as critical to resolving the crisis.