Global economy faces ‘Major Threat’ as energy crisis deepens

WEB DESK: The global economy is currently under “major threat” due to a burgeoning energy crisis sparked by ongoing conflict in the Middle East, according to Fatih Birol, the head of the International Energy Agency (IEA).

Speaking at the National Press Club in Canberra on Monday, Dr Birol warned that the escalating situation poses a risk so significant that “no country will be immune” to its repercussions if the volatility continues, according to Dawn News.

He drew grim parallels between the current instability and the seismic oil shocks of the 1970s, as well as the market disruptions following Russia’s invasion of Ukraine in 2022.

A triple blow to global markets

Dr Birol described the current predicament as a perfect storm, suggesting it effectively combines the pressures of two historic oil crises and a natural gas crash simultaneously.

Addressing the scale of the physical fallout, he revealed to Australian media that at least 40 energy assets across the Middle East have been “severely or very severely damaged” during the recent hostilities.

Stressing the urgency for a unified diplomatic response, the IEA chief noted that the fragility of the global market necessitates immediate international efforts to resolve the conflict before the economic damage becomes irreversible.