The energy shocks from the war in Iran are taking their toll on the global economy, economists and energy experts said this week. And if you think energy prices are high now, you ain’t seen nothing yet.
Skyrocketing oil and gas prices that are straining countries in Asia will soon be hitting Western shores as Iran’s closure of the vital Strait of Hormuz roils oil and gas shipments from the Persian Gulf. Even the United States, with its world-leading energy production, will see its economic buffer eroded by the rally that has sent crude prices up near $100 a barrel, energy executives, finance ministers and officials from leading international institutions said.
“The prices in my view do not reflect the current situation we are in,” International Energy Agency Executive Director Fatih Birol said Tuesday at the Semafor World Economy event in Washington. “It is moving to Europe and the rest of the world … No country is immune to this crisis, full stop.”
The gloomy energy message contributed to the dour kickoff to annual spring meetings in Washington for the International Monetary Fund and World Bank. The IMF reduced its growth forecast amid the turmoil in energy markets, which has threatened to upend agriculture, technology and other sectors.
