WELLINGTON, New Zealand (AP) — The director of the International Energy Agency warned Monday that escalating Middle East tensions pose a “major, major threat” to worldwide economic stability due to the ongoing Iran conflict.
Speaking to Australia’s National Press Club in Canberra, Fatih Birol emphasized that every nation would feel the consequences if the situation deteriorates further. “No country will be immune to the effects of this crisis if it continues to go in this direction,” Birol stated.
According to Birol, the current Middle Eastern turmoil has created more severe disruptions than both the 1970s oil crises and the energy market upheaval caused by Russia’s invasion of Ukraine combined.
His warning coincided with Israel conducting fresh strikes against Tehran in the early morning hours Monday.
Meanwhile, a senior U.S. military official advised Iranian citizens to stay in protective shelters indefinitely, as Iran launched retaliatory attacks on neighboring Gulf states and issued threats to target their electrical infrastructure.
The energy agency chief reported that conflict has caused significant damage to 40 power facilities spanning nine regional nations, with impacts ranging from “severely or very severely damaged.”
Birol revealed ongoing discussions with European and Asian governments regarding potential releases from strategic petroleum reserves to stabilize markets.
“We will see, we will look at the markets,” he explained. “If it is necessary of course we will do it, but we will look at the conditions, we will analyze, assess the market and discuss with our member countries.”
With Iran maintaining control over the crucial Strait of Hormuz shipping lane, President Donald Trump issued an ultimatum Sunday via social media, giving Tehran 48 hours to reopen the waterway or face U.S. strikes that would “obliterate” Iranian power infrastructure.
