No country immune to energy shock from Middle East war, warns IEA chief
The global economy faces a “major threat” from the energy crisis triggered by the ongoing Middle East conflict, Fatih Birol warned on Monday, saying no country would be immune if the situation worsens.
Speaking at the National Press Club of Australia, Birol compared the current situation to the oil shocks of the 1970s and the disruption caused by Russia’s invasion of Ukraine.
“This crisis as things stand is now two oil crises and one gas crash put all together,” Birol said.
“The global economy is facing a major, major threat today, and I very much hope that this issue will be resolved as soon as possible. No country will be immune to the effects of this crisis if it continues to go in this direction. So there is a need for global efforts,” he added.
Oil supply shock larger than past crises
Birol said the world is currently facing a supply disruption larger than the combined oil shocks of the 1970s.
“Many of us remember the two consecutive oil crises in the 1970s… at that time, in each of the crisis, the world has lost about five million barrels per day, both of them together, 10 million barrels per day,” he said.
“As of today, we lost 11 million barrels per day, so more than two major oil shocks put together.”
Energy infrastructure hit in war
The International Energy Agency chief also said that the war in the Middle East has caused significant damage to energy infrastructure.
“At least forty… energy assets in the region are severely or very severely damaged across nine countries,” Birol said.
Hormuz disruption fuels market fears
The crisis has intensified as tensions rise around the Strait of Hormuz, through which nearly 20% of global oil and gas shipments pass.
The waterway has seen major disruptions, with petroleum shipments through the narrow corridor nearly coming to a halt.
Meanwhile, Donald Trump and Iran have exchanged fresh threats as the war entered its fourth week, with Washington demanding that Tehran reopen the strait.
Oil prices climb
Global markets have reacted sharply to the crisis. US benchmark crude oil briefly touched the $100-per-barrel mark early Monday as supply concerns intensified.
Analysts warn that prolonged disruptions in energy supplies could trigger higher inflation and slow global economic growth.
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Love IAEA / IEA. Both have been worried on Iran for enriching Uranium for many decades now, owning with less than 0.00000001 gram of uranium & surely one day they will buy a N-Bomb from China (in ready to use condition) with its launchers
Love Iran, Love America, Love israel