In Sydney, Fatih Birol, the head of the International Energy Agency, warned that the global economy is in serious trouble because of the energy crisis linked to the Middle East war.
He said the situation is so bad that no country will escape its impact.
Speaking at the National Press Club, Birol compared today’s crisis to some of the worst in history — including the oil shocks of the 1970s and the fallout from Russian invasion of Ukraine.
In simple terms, he said this is like multiple crises happening at once — oil and gas problems all combined into one.
Birol warned that the global economy is facing a “major threat” and stressed that countries need to work together to deal with it.
Meanwhile, tensions are rising. Donald Trump and Iran have been exchanging threats as the war enters its fourth week.
Trump has demanded that Iran reopen the Strait of Hormuz — a key route through which about 20% of the world’s oil and gas passes.
Right now, that route is almost completely blocked, which has slowed down global oil shipments.
As a result, oil prices are climbing again. US crude briefly touched $100 per barrel on Monday.
Birol also revealed that at least 40 energy sites across the region have been badly damaged during the conflict.
In short, the situation is getting worse — and if it continues, the economic impact could be felt everywhere.
