The economy is facing a major threat: The conflict in the Middle East raises fears of a global energy crisis.

The world is at risk of facing the most serious energy crisis in several decades due to the conflict in the Middle East, as warned by Fatih Birol, director of the International Energy Agency (IEA), on Monday, March 23. He highlighted a “major threat” to the global economy.

“We have lost 11 million barrels per day so far, more than the two major oil crises combined,” he stated during a speech at the National Press Club in Canberra, referring to the oil shocks of the 1970s.

He further explained, “During each of those crises, the world lost about five million barrels per day, so combining both crises, we have lost 10 million barrels per day.”

In addition to emphasizing the consequences of Russia’s invasion of Ukraine in 2022, Fatih Birol added that “this crisis represents at this point two oil crises and a collapse of the gas market combined.”

The IEA is calling for “global-scale action”

According to Fatih Birol, the conflict has severely affected energy infrastructures in the region, with at least 40 installations “severely or very severely damaged” in nine Middle Eastern countries.

He cautioned about the global scale of the situation: “No country will be immune to the effects of this crisis if it continues in this direction. It is therefore necessary to take global-scale action.”

“The global economy is facing a major threat, and I sincerely hope that this problem will be resolved as soon as possible,” he added.

The Strait of Hormuz, through which usually 20% of the world’s hydrocarbon production flows, is de facto blocked due to the Middle East war that began on February 28 with Israeli-American strikes against Iran.

Trump’s threats

If Iran does not reopen this passage by Monday night, U.S. President Donald Trump threatened to “strike and obliterate” Iranian power plants, “STARTING WITH THE LARGEST!”

In response to the Israeli-American strikes, Iran is conducting missile and drone attacks targeting energy infrastructures in Washington’s allied countries and ships in the Gulf, especially those passing through the strait.

In an attempt to limit the rise in oil prices, the United States authorized on Friday the sale and delivery of Iranian oil held on ships for one month. However, Tehran claims to have no surplus crude at sea.