Global economy under 'major threat' from Strait of Hormuz crisis: IEA chief

• IEA warns no country will be immune to escalating energy disruptions.
• Strait of Hormuz tensions threaten global oil supply and economic stability.

The head of the International Energy Agency, Fatih Birol, warned Monday that the global economy faces a “major threat” due to the escalating energy crisis linked to the war in the Middle East.

Read more: Global energy markets shaken as Iran maintains "De Facto" blockade of Strait of Hormuz

Speaking at the National Press Club in Canberra, Birol said the situation could have far-reaching consequences if tensions continue to rise. “The global economy is facing a major, major threat today, and I very much hope that this issue will be resolved as soon as possible,” he said.

Hormuz Crisis Raises Alarm

Birol stressed that the Strait of Hormuz, a critical global oil shipping route, remains central to the crisis. Any prolonged disruption could significantly impact global energy supplies, driving up prices and straining economies worldwide.

Read more: Iraq asks Iran for oil tanker passage through Strait of Hormuz

“No country will be immune to the effects of this crisis if it continues to go in this direction. So there is a need for global efforts,” he added.

War Fuels Energy Uncertainty

The warning comes amid ongoing hostilities involving ‘Israel’, the United States, and Iran, which have intensified fears of supply disruptions in one of the world’s most vital energy corridors.

The Strait of Hormuz handles a significant share of global oil exports, making it a strategic chokepoint. Any escalation affecting maritime traffic through the strait could trigger sharp economic repercussions, from rising fuel costs to broader inflationary pressures.

Calls for Global Action

Birol urged coordinated international action to stabilize the situation and prevent further economic fallout. Analysts warn that prolonged instability could slow global growth and deepen existing economic challenges.