SYDNEY: The global economy faces a 'major threat' from the energy crisis caused by the Middle East conflict, according to International Energy Agency (IEA) chief Fatih Birol. Speaking at the National Press Club in Canberra, Birol likened the current situation to past energy crises, emphasizing the need for global cooperation.
'This crisis combines two oil crises and one gas crash,' he stated. 'No country will be immune to its effects if it continues.'
The conflict has led to the near-halt of petroleum shipments through the Strait of Hormuz, a key bottleneck for about 20% of global oil and gas trade, causing oil prices to surge.
US President Donald Trump and Iran have exchanged threats, with Trump demanding Iran reopen the blocked Strait.