‘Two Oil Crises and One Gas Crash Put Together’: IEA Warns Global Economy Faces ‘Major Threat’

The International Energy Agency (IEA) has issued a stark warning as the Middle East war intensifies: the global economy is facing a “major, major threat.”

IEA Chief’s Warning

Fatih Birol, IEA chief, compared the current energy crisis to those of the 1970s and the impact of Russia’s 2022 invasion of Ukraine.

“This crisis as things stand is now two oil crises and one gas crash put all together,” Birol said, adding that no country will be immune to its effects.

Gulf Nations Targeted

Saudi Arabia and the United Arab Emirates were repelling fresh attacks on Monday morning, while sirens sounded in Bahrain.

Abu Dhabi authorities said an Indian national had been wounded by falling debris from an intercepted ballistic missile.

Israel Launches ‘Wide-Scale’ Strikes

Israel’s military announced it launched “a wide-scale wave of strikes” on Tehran Monday morning.

Iranian media reported explosions ringing out over the capital, while an AFP journalist saw a thick column of black smoke rising at least an hour later.

One person was killed in an overnight US-Israeli attack on a broadcaster in the coastal area of Bandar Abbas, Iranian state-run television reported.

Macron’s Support

French President Emmanuel Macron wrote on X that he spoke with Saudi Crown Prince Mohammed bin Salman to express “solidarity” with the kingdom and reiterate France’s commitment to contributing to air defences against Iranian missiles and drones.

Lebanon Front

• Lebanon’s Prime Minister said members of Iran’s Revolutionary Guards are commanding Hezbollah’s operations.

• Israel’s military will expand ground operations in Lebanon, its army chief said, warning the offensive “has only (just) begun.”

• An Israeli civilian was killed near the Lebanese border; the military is investigating whether it was from its own fire.

• Lebanon’s president slammed Israeli strikes on bridges and infrastructure as “a prelude to a ground invasion.”

Iraq Front

Three strikes targeted an influential pro-Iranian armed group in its stronghold south of Baghdad.

The strikes came after an attack targeted a US diplomatic and logistics centre at Baghdad International Airport.

Kataeb Hezbollah said it would extend its five-day pause on attacking the US embassy in Baghdad.

West Bank

Palestinian residents said Israeli settlers had torched buildings and cars in attacks on several villages in the occupied West Bank.

The Bottom Line

The IEA says the world faces an energy crisis of historic proportions.

Saudi Arabia, UAE, and Bahrain are under fire. Israel is striking Tehran. Hezbollah is fighting in Lebanon. And no country will be immune.

The war is widening. The oil shock is deepening. And the global economy is holding its breath.