Energy output lost in the Middle East from the ongoing conflict in the region will take about two years to recover, Fatih Birol, the head of the International Energy Agency, was quoted as saying in an interview with the Neue Zuercher Zeitung newspaper.
"That will vary from country to country. In Iraq, for example, it will take much longer than in Saudi Arabia. However, we estimate it will take approximately two years overall to reach pre-war levels again," Birol told the Swiss newspaper.
Birol added that the market was underestimating the consequences of a prolonged closure of the Strait of Hormuz.
Shipments of oil and gas that were already en route to their destinations before the war in Iran began have now arrived, mitigating the impact of shortages, he said.
"But no new tankers were loaded in March. There were no new deliveries of oil, gas or fuels to Asian markets. This gap is now becoming apparent. If the Strait of Hormuz is not reopened, we must prepare for significantly higher energy prices."
Asked whether the IEA could carry out another release of emergency oil reserves after its March move, Birol said the agency was ready to act immediately and decisively.