Global Economy Faces Major Threat Because of Iran War
WELLINGTON, New Zealand: The global economy faces a “huge, huge threat” from the Iran war, the head of the International Energy Agency said Monday.
“No country will be immune from the effects of this crisis if it continues to move in this direction,” Fatih Birol told the Australian National Press Club in Canberra on Monday.
He said the crisis in the Middle East had a combined effect worse than the two oil shocks of the 1970s and the impact of the Russia-Ukraine war on gas markets.
His comments came as Israel launched a new wave of attacks against Tehran early on Monday.
A senior American commander also told Iranians to stay in shelters for the foreseeable future, while Iran renewed attacks on its Gulf neighbors and threatened to start hitting power plants.
Birol said 40 energy assets in nine countries in the region were “severely or very severely damaged.”
He added that he was consulting with governments in Europe and Asia about the possibility of further releasing stockpiled oil.
“We will see, we will look at the markets,” he said. “Of course we will do it if necessary, but we will look at the conditions, analyze the market, evaluate it and discuss it with our member countries.”
While Iran continues its pressure on the Strait of Hormuz, US President Donald Trump gave Tehran 48 hours to open the strategic waterway to all ships and said that otherwise the US will “destroy” Iran’s power plants. Trump posted the threat on social media in Middle Eastern time zones early Sunday.
