Dozens of energy assets ‘severely’ damaged during Iran conflict

• Impact across nine countries
• 11 million bpd affected
• More oil reserves could be released

At least 40 energy assets have been “severely or very severely damaged” across nine Middle East countries since the Iran conflict started, International Energy Agency (IEA) executive director Fatih Birol has said.

The damage means it will take some time for the oil fields, refineries and pipelines to come back to their normal capacity, Birol said at Australia’s National Press Club address.

He said the overall impact of the current disruptions is equivalent to the two oil crises in the 1970s and the 2022 natural gas crisis due to the Russia-Ukraine conflict, combined, Birol said.

The two crises impacted 10 million barrels per day (bpd) of crude, but the conflict, as of today, has affected 11 million bpd, he said.

“Not only oil and gas, but some of the vital arteries of the global economy, such as petrochemicals, fertilisers, sulphur and helium, have been interrupted, which will have serious consequences for the global economy,” he said.

Asia is at the forefront of the crisis due to its heavy reliance on these, Birol added. 

Earlier this month, the IEA announced plans to release 400 million barrels of oil from its emergency reserves to address the oil market disruption.

Last week, the Paris-based organisation proposed demand-side measures to help energy importers.

Birol said that more oil reserves could be released if the Iran war further disrupts global energy markets over the coming days and weeks. 

However, the opening of the Strait of Hormuz is the only true solution to fuel supply disruptions, according to Birol.

Further reading:

• Oil is still flowing through Hormuz – on Iran’s terms
• Aramco oil exports spike after shift to Red Sea ports
• Aramco lowers crude shipments to Asia for second straight month