IEA Chief Warns Oil and Gas Recovery May Take Two Years Post-War Damage
The International Energy Agency (IEA) chief, Fatih Birol, has indicated that it could take up to two years to restore significant oil and gas production lost due to the ongoing conflict in Iran. The war has caused extensive damage to oil fields, refineries, and pipelines across the Persian Gulf, and the closure of the Strait of Hormuz has further disrupted a critical export route. This has resulted in the removal of hundreds of millions of barrels from the market. Despite the potential reopening of the Strait, Birol emphasized that production levels would not immediately return to pre-war conditions, as facilities require repairs and output needs to be restarted. The IEA previously estimated that the conflict has reduced oil production by as much as 13 million barrels per day, with total export losses, including refined products, being even higher. The recovery of natural gas production may take even longer, with some LNG terminals potentially needing more than two years to resume normal operations. 
