IEA Chief Warns of Significant Economic Risks from Iran Conflict

WELLINGTON – The global economy is staring down the barrel of a significant threat, according to the head of the International Energy Agency. On Monday, Fatih Birol expressed grave concerns over the escalating situation in Iran, describing it as a “major, major threat” to worldwide economic stability.

Addressing Australia’s National Press Club in Canberra, Birol warned that the ongoing crisis in the Middle East could wreak havoc on economies across the globe. “No country will be immune to the effects of this crisis if it continues to go in this direction,” he emphasized, highlighting the far-reaching implications of the conflict.

Birol further elaborated that the current upheaval has had a more severe combined impact than the notorious oil shocks of the 1970s, as well as the disruptions in gas markets triggered by the Russia-Ukraine conflict. His stark assessment came amidst a fresh wave of Israeli attacks targeting Tehran early Monday.

Meanwhile, an American military commander advised Iranians to seek shelter and remain there for the foreseeable future, as tensions continue to escalate. In response, Iran has renewed its strikes against Gulf neighbors, issuing threats to target their power infrastructure, adding another layer of complexity to the already volatile situation.

A top American commander also told Iranians to remain in shelters for the foreseeable future, while Iran renewed strikes on its Gulf neighbors and threatened to start hitting their power plants.

Birol said 40 energy assets in nine countries across the region were “severely or very severely damaged.”

The official added that he was consulting with governments in Europe and Asia about the prospect of releasing further stockpiled oil.

“We will see, we will look at the markets,” he said. “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.”

As Iran continues its stranglehold on the Strait of Hormuz, U.S. President Donald Trump gave a 48 hour deadline for Tehran to open the strategic waterway to all ships, saying that otherwise the United States would “obliterate” Iran’s power plants. Trump posted the threat to social media early Sunday in Middle East time zones.