LONDON: The global energy crisis triggered by the Middle East conflict is entering a new phase as the summer season approaches, the Financia...
LONDON: The global energy crisis triggered by the Middle East conflict is entering a new phase as the summer season approaches, the Financial Times reported on Sunday, citing sources.
According to the newspaper, around 80 countries have introduced emergency measures to shield their economies. Paul Diggle, chief economist at the investment firm Aberdeen, told the Financial Times that the price of Brent crude could rise to $180 per barrel.
The situation surrounding supplies of oil, diesel, and jet fuel could worsen amid growing demand for air conditioning and overseas travel. Economists have warned of a possible new spike in oil prices due to the fastest depletion of global reserves on record, the newspaper noted. European Commissioner for Transport and Tourism Apostolos Tzitzikostas, quoted by the Financial Times, said that if the Middle East conflict is not resolved in the coming weeks, a global recession could become inevitable.
In early May, Russian presidential envoy for investment and economic cooperation with foreign countries and CEO of the Russian Direct Investment Fund Kirill Dmitriev said the world was heading toward the worst energy crisis in history because of record-high oil prices.
The escalation on the global energy market is linked to the conflict in the Middle East, including US and Israeli strikes on Iranian territory and tensions surrounding shipping through the Strait of Hormuz.
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