IEA says global energy markets may not return to pre-war levels in 2027

The International Energy Agency (IEA) has warned that global energy markets may not return to pre-Iran war conditions by 2027, as the conflict continues to disrupt oil and gas supplies and push energy prices higher worldwide. IEA Executive Director Fatih Birol made the statement on Monday, October 26, 2026, during the Singapore International Energy Week conference.

Birol expressed concern over the prolonged impact of the Iran war, which began in late February, noting that energy prices have risen sharply since the conflict began. The IEA survey revealed that 90 gigawatts of nuclear power capacity is currently under construction globally, the highest level in four decades. Global oil prices have surged since the Iran war, with Brent crude futures reaching $117 per barrel on Friday, their highest level in nearly six months.

Though prices have since moderated, Brent crude remains about 59% above its pre-war level, signaling ongoing supply disruptions and strain on global energy markets. Birol emphasized that governments and businesses must prepare for extended market uncertainty by prioritizing energy security and contemplating the future trajectory of their energy systems.

The sustained rise in global oil prices is posing challenges for several economies, particularly those reliant on imported petroleum products. Higher energy costs are widening trade deficits and increasing import expenditures, exacerbating the pressure on these economies. Various measures have been introduced to boost petroleum supplies and mitigate the impact of rising fuel prices, including a recent agreement between Russia and the United States for a tanker carrying 40,000 metric tonnes of Russian diesel to be shipped to New York.