New Delhi, March 23: The ongoing attacks between Iran and the U.S.-Israel alliance are increasingly impacting countries worldwide. Nations are urging Iran to cease hostilities immediately and fully open the Strait of Hormuz. Amid these developments, Fatih Birol, the Chief of the International Energy Agency (IEA), has issued a warning that rising tensions in the Middle East pose a significant threat to energy resources, jeopardizing the global economy.
Birol stated that the current situation in West Asia presents a serious risk to economies around the world. Speaking at an event in Australia, he emphasized that the global economy is facing a major threat, and he hopes for a swift resolution to the crisis.
He noted that the repercussions of this conflict will not be confined to a few nations; no country will be able to escape the impact of this crisis. The ongoing conflict between the U.S.-Israel and Iran has led to the largest disruption in global oil supply history. Actions from Iran have significantly reduced shipping traffic through the Strait of Hormuz.
The Strait of Hormuz is a crucial route for global trade, with approximately 20% of the world’s oil consumption passing through it. Each day, around 20 million barrels of crude oil and oil products transit through the strait.
Meanwhile, Iran’s Foreign Ministry has stated that the Strait of Hormuz is not blocked, and navigation continues. Necessary measures are being taken due to the wartime conditions.
The ministry affirmed that Iran has always respected the freedom of navigation and maritime security, working to uphold these principles for years.
Last week, the IEA established a range of demand-side actions for governments, businesses, and households. These include working from home and reducing air travel to mitigate the economic impact on consumers.
Immediate actions to reduce demand include working from home whenever possible. Additionally, minimizing oil usage for commuting, especially where jobs are suitable for remote work, is advised. The report suggests switching to modern cooking methods to reduce reliance on LPG, promoting electric cooking and other modern options.
Birol remarked, “The war in the Middle East is creating a major energy crisis, resulting in the largest supply disruption in the history of the global oil market. If a quick solution is not found, the effects on the energy market and the economy will become even more severe.”
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