More than 40 key energy assets across nine countries in the Middle East have been “severely or very severely” damaged amid the ongoing conflict, according
to the International Energy Agency. The scale of destruction is expected to prolong disruptions to global energy supply chains even after hostilities subside. Speaking in Canberra, IEA Executive Director Fatih Birol said critical infrastructure—including oil fields, refineries, and pipelines—will take significant time to return to full operation, said a Bloomberg report. The conflict, now stretching beyond three weeks, has shaken the global energy system. Shipping through the vital Strait of Hormuz has nearly come to a halt, driving sharp spikes in crude oil, natural gas, and fuel prices. Birol compared the scale of disruption to a combined shock of the 1970s oil crises and the 2022 gas crisis following the Russia-Ukraine war. Beyond oil and gas, the impact is rippling across essential industrial supply chains. Trade in petrochemicals, fertilizers, sulfur, and helium—key building blocks of the global economy—has been significantly disrupted, raising concerns of wider economic fallout. Asia remains particularly vulnerable due to its heavy dependence on Middle Eastern energy imports. Birol also cautioned against export restrictions, emphasizing the need for coordinated global action during such a crisis. In response, the IEA has already announced the release of a record 400 million barrels from emergency reserves to stabilize markets. Additional releases remain on the table if disruptions worsen. However, Birol stressed that the ultimate solution lies in restoring normal shipping flows through the Strait of Hormuz, without which global energy markets will remain under severe strain.
