US-Israeli Mideast war damage to energy infrastructure may cost $58bln
Al Mayadeen | April 15, 2026
The cost of repairing energy-linked infrastructure damaged during the recent US-led escalation in the Middle East could reach as high as $58 billion, underscoring the scale of destruction inflicted across the region, Rystad Energy reported.
Rystad Energy estimates that oil and gas facilities alone could account for up to $50 billion of that total, reflecting extensive damage to some of the region’s most critical assets. The figure marks a sharp increase from $25 billion just weeks earlier, with the firm noting that “the scope of damage has expanded materially” as strikes intensified before a temporary ceasefire was reached between Washington and Tehran.
The bulk of the damage is concentrated in oil and gas infrastructure, the backbone of regional economies, with repair costs in this sector alone reaching up to $50 billion. Rystad noted that downstream refining and petrochemical assets account for the largest share of losses due to their technical complexity and the extent to which they were targeted in later stages of the war. However, the impact has extended further, affecting essential civilian and industrial facilities, including desalination plants, steel factories, and aluminum production sites, adding another $3 billion to $8 billion in losses.
Global fallout
Rystad stressed that the consequences extend far beyond the region, warning that rebuilding damaged infrastructure does not generate new energy capacity but instead diverts global resources, leading to project delays and inflationary pressure worldwide. The firm described the situation as “a stress test for the global energy supply chain,” noting that the same contractors, equipment, and engineering capacity required for repairs are already committed to major LNG and offshore projects launched in recent years.
This overlap is expected to slow the execution of new energy developments, as operators prioritize restoring existing production over advancing expansion projects.
As a result, recovery is increasingly shaped not by capital availability but by competition for access to constrained supply chains, logistics, and specialized labor.
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