The ongoing instability in the Middle East poses significant risks to global economies, according to a prominent energy executive. TotalEnergies’ CEO, Patrick Pouyanne, warned on Monday that repercussions would be “real” if the conflict continues beyond six months. Pouyanne, speaking to Telegrafi, emphasized the potential for widespread harm.
He stated, “If it extends beyond six months, we will see several real consequences. All global economies will be affected.” The situation is largely driven by Iran’s effective closure of the Strait of Hormuz, a move in response to attacks by the United States and Israel. This action has dramatically curtailed global oil supplies, generating serious concerns among governments.
The disruption has led to worries about escalating inflation and diminished economic expansion. Pouyanne pointed out that normally, around 20 percent of worldwide oil production transits the strait. However, with the current blockage, approximately 10 million barrels of oil per day are unable to leave, creating a substantial supply deficit.
The continued duration of this crisis, extending beyond six months, represents a critical threat to international financial stability.
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