Fatih Birol, government director of the Worldwide Vitality Company (IEA), speaks on the Nationwide Press Membership in Canberra, Australia, on Monday, March 23, 2026.
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The top of the Worldwide Vitality Company mentioned on Monday that not less than 40 power belongings throughout 9 international locations within the Center East have been “severely or very severely” broken because the Iran warfare started, elevating fears of extended provide disruptions.
Talking on the Nationwide Press Membership in Australia’s capital, IEA Govt Director Fatih Birol mentioned harm to grease and fuel fields, refineries and pipelines throughout the Center East would take a while to restore.
His feedback come as market contributors carefully monitor threats from the U.S. and Iran over power amenities because the sprawling regional battle enters its fourth week.
The Iran warfare has severely disrupted power commerce flows by way of the strategically very important Strait of Hormuz, creating what the IEA says is the biggest provide disruption within the historical past of the worldwide oil market. The worldwide provide of liquefied pure fuel (LNG) has additionally been lowered by roughly 20% because the battle started on Feb. 28.
Birol mentioned the fallout from the Iran warfare is equal to the 2 main oil crises of the Nineteen Seventies and the 2022 fuel disaster “put collectively.”
He added: “And, if I could, not solely oil and fuel. A few of the very important arteries of the worldwide financial system, similar to petrochemicals, similar to fertilizers, similar to sulfur, similar to helium. Their commerce is all interrupted, which might have critical penalties for the worldwide financial system.”
U.S. President Donald Trump on Saturday threatened to “obliterate” Iran’s energy crops if Tehran didn’t absolutely reopen the Strait of Hormuz inside 48 hours.
The slender waterway is a key maritime hall that connects the Persian Gulf and the Gulf of Oman. Roughly 20% of worldwide oil and fuel usually passes by way of it.
Iran’s Parliament spokesperson Mohammad Baqer Qalibaf responded, saying that essential infrastructure and power amenities within the Gulf area could possibly be “irreversibly destroyed” ought to Iranian energy crops be attacked.
On condition that transport has just about floor to a halt within the Strait of Hormuz because the battle started, the IEA’s Birol mentioned the reopening of the waterway was the “single most essential” resolution to the worldwide power disaster.
He singled out Asia as being on the forefront of the Iran warfare power shock and mentioned the IEA was ready to follow-up its historic launch of 400 million barrels of oil to the market on March 11.
“Whether it is obligatory, in fact, we’ll do it,” Birol mentioned.
— CNBC’s Anniek Bao contributed to this report.
