US-Iran War Impact: West Asia May Take Up To 2 Years To Restore Lost Energy Production, Says IEA

(MENAFN- Live Mint) West Asia's energy production could take up to two years to return to pre-war levels following the conflict between the US and Iran, the Swiss newspaper Neue Zürcher reported, citing the International Energy Agency (IEA).

IEA Executive Director Fatih Birol told the Swiss newspaper that recovery timelines would differ across the region, depending on each country's production capacities and infrastructure resilience.

"In Iraq, for example, it will take much longer than in Saudi Arabia," Birol said, highlighting the uneven pace of recovery among major oil-producing areas. Referring to IEA estimates, he said that it would take "approximately two years overall" for production in the Middle East to return to levels before the war began on 28 February.

IEA anticipates more flight cancellations

According to the newspaper, Birol said more flight cancellations are likely. He also anticipated continued supply chain disruptions and renewed momentum for the comeback of nuclear energy.

Established in 1974, the International Energy Agency is an international energy forum comprising 29 industrialised countries within the Organisation for Economic Co-operation and Development (OECD).

Discussions of Iran ceasefire

The US Secretary of State Marco Rubio spoke to the United Kingdom Foreign Secretary, Yvette Cooper, during which he discussed the Iran ceasefire and maritime security in the Strait of Hormuz, according to Al Jazeera, citing US State Department Principal Deputy Spokesperson Tommy Pigott.

The two sides addressed the urgent need to restore freedom of navigation in the Strait of Hormuz, ensuring that commercial vessels can sail safely through the route and that global energy supplies continue to flow without disruption.

The ceasefire agreed between Washington and Tehran is currently set to expire on 22 April.

Meanwhile, US President Donald Trump said it remains uncertain whether the ongoing ceasefire with Iran will be extended, even as he expressed optimism about diplomatic progress, with both sides exploring a potential agreement to end the conflict. The next round of talks could take place over the weekend.

“We're doing very well. I can tell you, maybe it'll happen before that. I'm not sure it needs to be extended. Just so you know, Iran wants to make a deal, and we're dealing with them very nicely. We've got to have no nuclear weapons. If we do, that's a big factor, and they're willing to do things today that they weren't willing to do two months ago,” President Trump said in response to a question on extending the ceasefire.

He also added that the United States is currently focused on concluding a deal with Iran, suggesting that progress in talks could make an extension unnecessary, according to ANI.

US forces impose maritime blockade targeting Iran's ports

The US Central Command (CENTCOM) said American forces are actively enforcing a large-scale maritime blockade targeting vessels entering or leaving Iranian ports and coastline. The operation involves more than 10,000 personnel, supported by a dozen naval vessels, and upwards of 100 aircraft deployed across key waterways in the region, according to ANI.

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Meanwhile, British Prime Minister Keir Starmer and French President Emmanuel Macron are set to host a virtual meeting of world leaders to discuss efforts to reopen the Strait of Hormuz and secure crucial shipping routes, CNN reported.

Leaders from around 40 countries are expected to participate in the summit, specifically to support the fragile ceasefire involving Iran and to ensure safe passage through the key maritime corridor, the agency reported.
(with wire inputs)

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