This war will have a devastating impact on the world economy, the IEA chief said – no one will be spared from this.

Desk. The head of the International Energy Agency said on Monday that the global economy faces a grave threat due to the Iran war. “If countries continue in this direction, no country will be immune from the effects of this crisis,” Fatih Birol said at the National Press Club of Australia in Canberra on Monday.

He said the combined impact of the crisis in West Asia has been far worse than the two oil crises of the 1970s and the impact of the Russia-Ukraine war on gas markets. His comments came as Israel launched a new wave of strikes against Tehran on Monday morning. A top US commander also told Iranians to remain in shelters for the foreseeable future, while Iran stepped up attacks on its Gulf neighbors and threatened to launch strikes on their power plants. 

Birol said 40 energy assets located in nine countries in the region have been severely or very severely damaged. The official further said that he is consulting with governments in Europe and Asia about the possibility of releasing excess stored oil. He said, “We will see, we will assess the markets. If necessary, we will certainly do so, but we will assess the situation, analyze and assess the market, and discuss it with our member countries.” In the wake of Iran’s tightening of its grip on the Strait of Hormuz, US President Donald Trump has given Tehran a 48-hour deadline to open the strategic waterway to all ships, saying otherwise the United States will destroy Iran’s power plants. Trump posted the threat on social media early Sunday morning, according to Middle Eastern time zones.