The International Energy Agency has issued a stark warning that the global economy faces severe peril if the current escalation in the Strait of Hormuz persists.
IEA Executive Director Fatih Birol stated that attacks from both sides of the strait threaten to disrupt critical shipments of oil, natural gas, and fertilizers, creating a bottleneck that could ripple through global supply chains.
The immediate impact of the disruption is already visible in regional energy markets.
Pakistan has been forced to purchase liquefied natural gas at its highest price levels since 2022, highlighting the acute vulnerability of import-dependent economies to shipping route instability.
This surge in spot prices underscores the fragility of energy security when key chokepoints are contested.
The IEA’s caution comes as global oil stockpiles continue to deplete amid surging summer travel demand.