The head of the International Energy Agency, Fatih Birol, has warned that the ongoing conflict involving Iran is a serious threat to the global economy. Speaking in Canberra, he said that no country will be safe from the effects if the situation continues to worsen.
Birol explained that the current crisis in West Asia could have a bigger impact than the oil shocks of the 1970s and even the recent disruptions caused by the Russia-Ukraine war. Rising tensions are already affecting oil and gas markets, leading to concerns about higher energy prices and economic instability worldwide.
Meanwhile, tensions are increasing as Donald Trump has set a deadline for Iran to reopen the important Strait of Hormuz. This route is crucial for global oil transport. If the deadline is not met, the United States has warned of strong military action.
In response, Iran has threatened to target electrical facilities in West Asia that supply power to American military bases. The statement was made by Iran’s paramilitary Revolutionary Guard, showing a rise in aggressive warnings from Tehran.
At the same time, Israel has indicated that the conflict could continue for several more weeks. It has also signalled the possibility of a ground operation in Lebanon. Recently, Israeli forces destroyed a key bridge and said they are determined to weaken Hezbollah, which is supported by Iran.
These developments have increased fears of a wider conflict in the region. Experts warn that if the situation escalates further, it could disrupt global energy supplies, increase fuel prices, and slow down economic growth in many countries.
Governments around the world are closely watching the situation and preparing for possible impacts on trade, energy supply, and overall economic stability.