Global Energy Markets Face Continued Instability Through 2028

The International Energy Agency (IEA) warns that global energy markets remain highly vulnerable due to the ongoing US-Iran conflict, with a return to normalcy unlikely before 2028. IEA Executive Director Fatih Birol stated that the closure of the Strait of Hormuz and doubled diesel prices have left the world in a precarious position. The war has significantly disrupted refining capacity in the Middle East, while Houthi militant attacks on Saudi infrastructure have further constrained shipping routes. Although emergency oil reserves have been deployed to mitigate shortages, the agency emphasizes that markets remain unstable. Members of the IEA are prepared to release further reserves if the crisis escalates, as regional exports struggle to maintain pre-war levels.