IEA: 40 energy assets severely damaged across 9 countries as war disrupts global supply

More than 40 energy assets across nine countries in the Middle East have been "severely or very severely" damaged amid the ongoing conflict, the International Energy Agency said, according to media reports Sunday. IEA Executive Director Fatih Birol said the damage could prolong disruptions to global supply chains even after the conflict ends. "It will take some time for the oil fields, refineries and pipelines to come back online," he said.

Crisis comparisons

Birol said more than three weeks of fighting have disrupted the entire energy supply chain and nearly halted shipping through the Strait of Hormuz. He said the impact of the disruptions is comparable to "the two major oil crises in the 1970s and the 2022 natural gas crisis … all put together." "Not only oil and gas, but some of the vital arteries of the global economy … their trade is all interrupted," he added.

Asian impact

Birol warned that Asia is particularly affected due to its reliance on regional energy supplies. "Every country first looks at its own domestic interest, but … serious export restrictions without justification might not be something which gets plus points," he said. The IEA plans to release 400 million barrels of oil from emergency reserves to ease supply shocks, he said, adding that additional reserves could be released if disruptions continue.

Strait of Hormuz disruption

Birol stressed that reopening the Strait of Hormuz remains critical to restoring global energy flows. The strait has been effectively disrupted since early March. Around 20 million barrels of oil normally pass through it daily, and its disruption has driven up shipping costs and pushed global oil prices higher, with Brent crude recently exceeding $116 per barrel.

Conflict context

US-Israeli strikes against Iran began on Feb. 28 and have reportedly killed at least 1,300 people, including former Supreme Leader Ayatollah Ali Khamenei and more than 150 schoolgirls. Iran has retaliated with drone and missile strikes targeting Israel, Jordan, Iraq, and Gulf countries hosting US military assets, causing extensive damage to energy infrastructure across the region.