Financial experts predict a global recession due to the energy crisis sparked by Donald Trump's war with Iran. The escalating crisis is exacerbated by the looming summer season, increased demand for air conditioning, and escalating oil prices.
The global economy is weeks away from a recession due to the energy crisis triggered by the war between the U.S. and Iran , report financial experts.
Approximately 80 countries have enacted emergency fuel rationing measures as oil prices surge, posing a threat of spiraling above $180 a barrel. The escalation is primarily attributed to the closure of the Strait of Hormuz, a critical waterway that handles approximately one-fifth of the world's oil exports. Economists and traders predict that, unless the war between the U.S. and Iran ends promptly, the energy prices will surge even further.
The average price of a gallon of gas in the U.S. has risen to $4.50, leading to the possibility of broader fuel rationing, industrial curtailments, and a substantial slowdown in global growth, as stated by The Financial Times. JPMorgan forecasts that oil inventories across developed economies could reach 'operational stress levels' by June. EU transport commissioner Apostolos Tzitzikostas expressed concern, stating, 'Unless the war ends soon, a world recession could be on the table.
' The looming summer further intensifies the situation, with increased demand for air conditioning and holiday travel augmenting crude oil, gasoline, diesel, and jet fuel consumption. Global gas stockpiles have drawn down at an unprecedented rate, and Australia has earmarked $10 billion to increase its fuel and fertilizer reserves. France has pledged to 'change the scope and scale' of its economic support measures
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