International Energy Agency says over 40 energy assets in Middle East "severely damaged," considers further release of crude oil reserves

International Energy Agency Director Fatih Birol said that more than 40 energy assets in nine Middle Eastern countries have suffered “severe or very severe” damage due to the war, which could prolong disruptions to global supply chains after the conflict ends.

On Monday, Birol told the National Press Club in Canberra, Australia, that the damage means it will take time for oil fields, refineries, and pipelines to resume operations.

The ongoing conflict in the Middle East for over three weeks has disrupted the entire energy supply chain, nearly completely blocking the vital Strait of Hormuz, leading to soaring prices for crude oil, natural gas, and fuels. Birol stated that the current chaos is comparable to the combined impact of two major oil crises in the 1970s and the natural gas crisis triggered by the Russia-Ukraine conflict in 2022.

He said, “It’s not just oil and natural gas—some critical parts of the global economy, such as petrochemical products, fertilizers, sulfur, and helium—are also experiencing trade disruptions, which will have serious consequences for the global economy.”

Birol noted that Asia is at the forefront of this crisis because it heavily depends on the region’s crude oil.

In early March, the International Energy Agency announced it would release a record 400 million barrels of emergency oil reserves to help mitigate supply shocks and price surges caused by the Middle Eastern war.

Birol said that if the Iran conflict further disrupts the global energy markets in the coming days or weeks, more oil reserves could be released as needed. However, he pointed out that the only real solution to the fuel supply interruption is to reopen the Strait of Hormuz, as shipping there has nearly come to a halt.