International Energy Agency head says global economy faces major threat
AP News • • business
Key Points:
- The head of the International Energy Agency (IEA), Fatih Birol, warned that the Iran war poses a "major, major threat" to the global economy, with no country immune to its effects if the crisis continues.
- The current Middle East conflict has caused a greater impact on oil supply than the combined oil shocks of the 1970s and has disrupted gas markets more severely than the Russia-Ukraine war, with an estimated loss of 11 million barrels of oil per day and 140 billion cubic meters of gas.
- Iran has intensified strikes on Gulf neighbors and threatened attacks on U.S. and Israeli energy infrastructure in response to U.S. President Donald Trump's warning to open the Strait of Hormuz, a critical route for global oil trade.
- The IEA has released a historic 400 million barrels of oil reserves to stabilize markets and is consulting with governments worldwide about potentially releasing more stockpiled oil if necessary to mitigate supply disruptions.
- Damage to 40 energy assets across nine countries and interruptions in trade of vital commodities like petrochemicals, fertilizers, sulfur, and helium could have serious repercussions for the global economy.
