The International Energy Agency (IEA) has warned that global energy markets may not return to conditions recorded before the Iran war in 2027, as the conflict continues to disrupt oil and gas supplies and drive up energy prices worldwide.
The agency’s Executive Director, Fatih Birol, disclosed this on Monday, October 26, 2026, while speaking at the Singapore International Energy Week conference, where he raised concerns about the prolonged impact of the conflict, which began in late February.
Birol also projected a resurgence in nuclear energy investment, revealing that an IEA survey identified 90 gigawatts of nuclear power capacity currently under construction globally, the highest level recorded in four decades.
Global oil prices have risen sharply since the outbreak of the Iran war, with renewed Houthi attacks in Saudi Arabia pushing Brent crude futures to $117 per barrel on Friday, their highest level in nearly six months.
Although prices moderated on Monday, Brent crude remained approximately 59% above its pre-war level, reflecting sustained supply disruptions and pressure on global energy markets.
The IEA chief warned that governments and businesses must prepare for prolonged market uncertainty by making energy security a central priority while also considering the future direction of their energy systems.
The sustained increase in global oil prices is placing pressure on several economies, particularly countries dependent on imported petroleum products, as higher energy costs widen trade deficits and increase import expenditure.
The divergence between energy inflation and broader consumer price movements highlights the pressure from rising energy costs, even as the overall inflation rate eased.
Governments and major energy-consuming economies have introduced measures to increase petroleum supplies and ease price pressures following disruptions caused by the Iran war.
On October 22, a tanker carrying 40,000 metric tonnes of Russian diesel was loaded at the Baltic port of Primorsk for shipment to New York under an agreement between Russia and the United States.
The measures are intended to ease supply shortages and reduce the impact of rising fuel prices on households, businesses and economies facing increasing energy costs.
