Abu dhabi: 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 (IEA) said, according to media reports Sunday. IEA Executive Director Fatih Birol indicated that the damage could prolong disruptions to global supply chains even after the conflict ends.

According to Philippines News Agency, Birol stated that it will take some time for the oil fields, refineries, and pipelines to come back online. More than three weeks of fighting have disrupted the entire energy supply chain and nearly halted shipping through the Strait of Hormuz. The impact of these disruptions is considered comparable to the two major oil crises in the 1970s and the 2022 natural gas crisis combined. Not only oil and gas, but some of the vital arteries of the global economy have seen their trade interrupted.

Birol noted that Asia is particularly affected due to its reliance on regional energy supplies. He cautioned that while every country prioritizes its domestic interests, serious export restrictions without justification might not be well-received. To mitigate the impact, the IEA plans to release 400 million barrels of oil from emergency reserves and has stated that additional reserves could be released if disruptions continue.

The reopening of the Strait of Hormuz remains critical to restoring global energy flows. The strait has been effectively disrupted since early March, affecting the transit of around 20 million barrels of oil daily. This disruption has led to increased shipping costs and higher global oil prices.

The conflict includes US-Israeli strikes against Iran, beginning on February 28, which have reportedly resulted in at least 1,300 deaths, including then-Supreme Leader Ali Khamenei. Iran has retaliated with drone and missile strikes targeting Israel, Jordan, Iraq, and Gulf countries hosting US military assets.