The head of the International Energy Agency, Fatih Birol, said on Monday that April could be more difficult than March for energy markets and the economy due to the ongoing war in the Middle East. Birol added: "While shipments from the region that had been loaded long before the crisis began were delivered in March, nothing was loaded during April." He explained to journalists after a meeting at the IMF headquarters: "The longer the disruption lasts, the worse the problem becomes." His remarks came during a meeting with IMF and World Bank leaders on Monday as part of a newly formed group to coordinate responses to the economic fallout from the war. Birol noted that the agency is monitoring energy facilities in the region, pointing out that among more than 80 affected facilities, more than a third suffered severe damage. He again confirmed that the world is facing a major challenge in energy security, adding, "No country is immune to this problem." Since the outbreak of the Middle East war following joint U.S.-Israeli strikes on Iran on February 28, Tehran has almost completely closed the Strait of Hormuz, through which 20% of the world's oil and liquefied natural gas production passes. Last Wednesday, the U.S. and Iran agreed to a two-week ceasefire to allow negotiations to begin, but talks held over the weekend in Islamabad failed, prompting U.S. President Donald Trump to impose a blockade on Iranian ports.
