The global economy could face severe consequences if the Middle East conflict continues for more than six months, according to TotalEnergies CEO Patrick Pouyanne.
Speaking to Chinese broadcaster CGTN in Beijing, Pouyanne said Iran’s closure of the Strait of Hormuz has already disrupted oil supplies, with about 10 million barrels per day stuck in the Gulf. “All the economies of the world will be damaged” if the conflict drags on, he warned.
In normal times, around 20% of global oil passes through the strait. Currently, inventories are helping cushion the impact, but a prolonged war would put economies under serious strain, he added.
Pouyanne urged quick solutions, noting that shorter disruptions of three to four months are manageable, but six months or more would be a major blow.
Iran has vowed to completely close the Strait of Hormuz if United States President Donald Trump carries out his threat to bomb Tehran’s power plants.
On Saturday, Trump said he would “hit and obliterate” Iranian power plants – “starting with the biggest one first” – if the critical waterway was not fully open to shipping within 48 hours.
