The economic risks of the world’s heavy dependence on oil and gas have been laid bare twice in four years - first with Russia’s invasion of Ukraine and now with the U…
The economic risks of the world’s heavy dependence on oil and gas have been laid bare twice in four years - first with Russia’s invasion of Ukraine and now with the U.S.-Israeli war on Iran - undermining U.S. President Donald Trump’s flagship push to double down on fossil fuels.
The dramatic supply disruptions and price spikes unleashed by the latest Middle East conflict are likely to harden the resolve of many governments to accelerate the drive for greater energy self‑sufficiency – and that will include clean energy.
The ongoing Middle East conflict has seen the closure of the vital Strait of Hormuz, through which roughly 20% of global oil and gas shipments flow, sending shockwaves through energy markets.
While Brent crude prices LCOc1have dropped from $119 per barrel on Monday - their highest level since June 2022 - to around $90, the global benchmark is still more than 24% higher since the start of the war.
In any case, the physical shortages that are rapidly developing are heaping pressure on economies worldwide, reviving fears of higher inflation, weaker industrial output and slower growth globally. The pain has been particularly acute in Asia, which relies on the Middle East for nearly 60%
Content Original Link:
" target="_blank">
