The International Energy Agency (IEA) has classified the ongoing war in the Middle East as the greatest threat to global energy security in history, warning that restoring oil and gas flows from the Gulf could take six months or more. The conflict has already caused a gas interruption volume double what Europe lost from Russia in 2022, and more oil loss than the 1970s shocks.
Key points
- IEA Director Fatih Birol stated the conflict is the biggest threat to global energy security ever.
- Restoration of oil and gas supplies from the Gulf region may require over six months.
- Oil prices rose to nearly US$ 120 per barrel following missile attacks on key energy centers.
- The volume of interrupted gas supply due to fighting doubles the amount Europe lost from Russia in 2022.
- Chile is observing the impacts with caution, noting risks like oil price hikes and potential investment slowdowns.
Why it matters
The conflict represents an unprecedented shock to global energy supply, leading to high oil price volatility and prompting domestic economic caution in countries like Chile.