The Middle East war could saddle the region with as much as $58 billion in repair costs for energy-linked infrastructure, with oil and gas facilities alone accounting for up to $50bn, Reuters reports citing data from energy research company Rystad Energy.

The estimate marks a sharp increase from the research firm’s initial $25bn projection three weeks ago, reflecting a broader scope of damage before an April 8 ceasefire between the US and Iran.

“Repair work does not create new capacity. It redirects existing capacity, and that redirection will be felt in project delays and into inflation far beyond the Middle East,” Rystad senior analyst Karan Satwani says.

“The $58bn bill is the headline, but the knock-on effects on energy investment timelines globally may prove just as significant.”

Rystad says total repair spending is likely to average around $46bn, with downstream refining and petrochemical assets accounting for the largest share due to their complexity and extent of damage.

Industrial, power, and desalination assets may add a further $3bn to $8bn in costs, the report adds.

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