Energy output in the Middle East could take two years to go back to pre-war levels, according to the head of the International Energy Agency.
Speaking to Swiss outlet Neue Zuercher Zeitung, Fatih Birol said that, however, output recovery will "vary from country to country."
"In Iraq, for example, it will take much longer than in Saudi Arabia," he added. Elsewhere in the interview he claimed that even though the IEA is not releasing more emergency oil reserves, "it's definitely under consideration."
The remarks, however, came before Iranian Foreign Minister Abbas Araghchi announced that the Strait of Hormuz is "completely open for the remaining period" of the ceasefire with the U.S. following the one announced between Lebanon and Israel.
Araghchi noted that vessels will have to go through the "coordinated route as already announced by Ports and Maritime Organisation of the Islamic Rep. of Iran."
President Donald Trump celebrated the development in a social media post: "IRAN HAS JUST ANNOUNCED THAT THE STRAIT OF IRAN IS FULLY OPEN AND READY FOR FULL PASSAGE. THANK YOU!" he said.
He went on to say that, however, the U.S. blockade remains in full force: "THE NAVAL BLOCKADE WILL REMAIN IN FULL FORCE AND EFFECT AS IT PERTAINS TO IRAN, ONLY, UNTIL SUCH TIME AS OUR TRANSACTION WITH IRAN IS 100% COMPLETE," he said. He went on to detail that negotiations "SHOULD GO VERY QUICKLY IN THAT MOST OF THE POINTS ARE ALREADY NEGOTIATED."
Oil prices plunged by about 10% after the announcement. The Brent crude dipped to about $90 per barrel, while U.S. crude fell to about $85.
The development could be a boon to the countries that are the most dependent of oil coming through the strait. Birol said earlier this week that Europe could face serious aviation disruption within six weeks if the conflict continued in full force.
According to the AP report, infrastructure damage linked to the conflict has worsened the pressure on fuel availability. More than 80 energy-related sites in the region have reportedly been affected, slowing the production and export of refined fuel products at a time when demand from airlines is rising ahead of the summer travel period.
