IEA Warns Energy Markets Won't Recover by 2027

International Energy Agency Executive Director Fatih Birol announced that global energy markets are unlikely to return to pre-war conditions by 2027. Speaking at the Singapore International Energy Week, Birol stated that the conflict in Iran, which began in late February, disrupted energy flows and eliminated a previously forecast market surplus.

Recent Houthi attacks in Saudi Arabia pushed Brent crude futures to $117 a barrel, with prices flirting with $120. Birol warned that these price levels are impacting global trade deficits and expressed concern over winter diesel demand as refineries enter maintenance.

The crisis has further strained Europe, which is already managing reduced Russian gas imports and now faces limited exports from Qatar and the United Arab Emirates. Consequently, Birol expects a strong comeback for nuclear power, noting that 90 gigawatts of nuclear plants are currently under construction, the highest level in 40 years.