IEA says Mideast fighting increases energy concerns

The head of the International Energy Agency said Tuesday that renewed fighting in the Mideast increases concerns over energy supplies but that the market still has cushions to absorb the impact.

"The escalation in hostilities affecting the Strait of Hormuz and energy infrastructure in the region increases security of supply concerns and uncertainty over the market outlook," IEA Executive Director Fatih Birol said in a statement.

"For the moment, crude oil markets continue to benefit from several cushioning factors," he added, pointing to increased exports from several countries and Saudi and United Arab Emirates oil reaching markets by alternative routes.