IEA: Recovery of oil and gas supply in the Persian Gulf may take six months, and the world is facing the most severe energy crisis in history
The IEA director stated that politicians and the market have underestimated the scale of the chaos, as approximately one-fifth of the world's oil and gas supply is effectively stranded in the region
The Director of the International Energy Agency (IEA) has warned that it may take six months to restore oil and gas supplies from the Persian Gulf, adding that the world is facing the most severe energy crisis in history.
Fatih Birol stated in an interview with the Financial Times that politicians and markets have underestimated the scale of the disruption, as approximately one-fifth of the world's oil and gas supply is effectively stranded in the region.
Birol described the war as "the largest global energy security threat in history" and stated that "restoring the oil and gas industry will take time."
"Some facilities will take six months to become operational, while others will take longer," he added.
As of now, Brent crude is priced at $103 per barrel, having risen over 40% this month.
