Qatar Says Global Economic Shock Could Hit Within Two Months if Hormuz Disruption Persists
Summary
- Qatar’s finance minister said the global economy could suffer a major shock within one to two months if disruptions in the Strait of Hormuz persist.
- He said the current rise in energy prices is only the tip of the iceberg, and the impact could widen quickly if additional supply disruptions occur.
- Qatar warned that constraints on LNG infrastructure and exports of gas, helium and fertilizer could create long-term problems for energy and food supplies, inflation and supply chains.
Forecast Trend Report by Period
Qatar warned that a global economic shock could be imminent as the fallout from the Iran war ripples through energy markets and the broader economy.
Walter Bloomberg reported on June 15 that Qatar’s finance minister said the global economy could suffer a major blow within one to two months if disruptions in the Strait of Hormuz persist.
The current rise in energy prices is only “the tip of the iceberg,” the minister said. Any additional supply disruption could quickly amplify the impact.
Qatar also warned that damage to its LNG infrastructure, or limits on exports of gas, helium and fertilizer, could disrupt global energy and food supplies.
The recovery could take years, underscoring the risk of lasting damage to energy supply chains.
Markets are watching Middle East tensions as a risk not only to energy flows, but also to broader supply chains and inflation. The course of events in the Strait of Hormuz and any further supply disruptions remain the key variables.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
