NEW DELHI
The ongoing conflict in West Asia has dealt a staggering blow to the world’s energy supply, with over 40 oil and gas facilities severely damaged across nine countries. The International Energy Agency (IEA) issued a grim warning, stating that no nation is safe from the economic fallout caused by these massive disruptions.
Fatih Birol, the Executive Director of the IEA, compared the current situation to the historic oil crises of the 1970s. However, he noted that the current war is actually much worse. The conflict has already wiped out about 11 million barrels of oil per day from the global market—a loss that exceeds the impact of past energy shocks combined.
It is not just about fuel for cars and planes. The crisis is also strangling the trade of vital goods like fertilizers, chemicals, and even helium. This could lead to a chain reaction of rising prices for food and manufactured goods worldwide. Because the Strait of Hormuz—the world’s most important trade route for energy—is currently at a standstill, getting resources to where they are needed has become nearly impossible.
To fight back against these supply shocks, the IEA has released a record 400 million barrels from emergency reserves. Leaders in Asia and Europe are currently discussing further releases to keep economies afloat. However, experts warn that the only real solution is to reopen trade routes.
Global economy shaken by West Asia war
