Italy states that energy recovery post-conflict will take a long time

Moscow (ANTARA) - Bank of Italy Governor Fabio Panetta stated that the recovery of global energy production is expected to take time even if the conflict in the Middle East ends. According to Panetta, even if the conflict concludes swiftly, the process of returning to normal production levels will not be instantaneous, as time is needed to restore production capacity and reactivate the entire energy supply chain. “In addition to recovering production capacity, additional time is required to revive the entire energy supply chain,” he said during a conference at the Italian Ministry of Foreign Affairs on Thursday (2/4). He added that the conflict has disrupted the global energy supply chain and forced several countries in the Persian Gulf region to halt hydrocarbon production, impacting global markets in both the short and long term. According to Panetta, as the conflict continues, risks to energy production and distribution infrastructure are also increasing. He also emphasised the importance of securing major energy routes, particularly the Strait of Hormuz, which is a key factor in determining the intensity and duration of global energy shocks. Panetta assessed that the current energy crisis is not creating a new phase but rather accelerating dynamics that were already underway previously. On 28 February, the United States (US) and Israel launched attacks on targets in Iran, including in Tehran, causing damage and civilian casualties. Iran then retaliated by attacking Israeli territory and US military facilities in the Middle East as a form of self-defence. The escalation of tensions around the Iranian region has triggered a de facto blockade in the Strait of Hormuz, the main distribution route for oil and liquefied natural gas from the Persian Gulf region to global markets, which has further pressured energy exports and production in the area, leading to fuel price increases in various countries.