IEA: Strait of Hormuz crisis could reshape global energy map

The head of the International Energy Agency (IEA), Fatih Birol, has warned that the consequences of the ongoing Middle East conflict and the crisis surrounding the Strait of Hormuz could lead to a fundamental reshaping of the global energy map.

He said the Strait of Hormuz has lost its former reliability, noting the current crisis may lead to a redrawing of the global energy map, Caliber.Az reports, citing Turkish media.

“The era in which the world economy was inseparably tied to a single strait will soon be over. Even if everything returns to normal tomorrow, high prices and volatility in the markets will have long-term consequences,” he noted.

Birol made it clear that rising tensions in the region are causing structural disruptions in global energy markets that go beyond temporary fluctuations.

In March, the IEA announced the release of 400 million barrels of oil from strategic reserves to stabilise the market and offset supply disruptions caused by the conflict.

“This is a kind of insurance for the whole world. If we face more difficult situations, we can continue to use these reserves,” the expert emphasised.

According to his assessment, restoring stability in the markets will take at least two years.

“Even if the Strait of Hormuz opens tomorrow, returning to the pre-war situation will require a significant amount of time, a recovery process, and substantial capital investment,” he added.

According to estimates, it will take at least two years.

“This will be a very difficult period for energy-importing countries. There is no magic wand that can instantly fix the situation in the markets,” Birol said.

On February 28, the United States and Israel began military operations against Iran, resulting in damage to major cities in the country, including Tehran.

Ships passing through the Strait of Hormuz were also targeted.

Following talks on April 11, the US Central Command announced a maritime blockade of Iran, restricting vessel movement to and from the ports of the Islamic Republic.

By Bakhtiyar Abbasov