If the ongoing war in the Middle East continues for the next few weeks, its impact will not be limited to that region only, but can affect the economy of the entire world. Recently, Qatar’s Energy Minister Saad Al-Kaabi has warned that in such a situation, the supply of oil and gas from Gulf countries may be disrupted. If the situation worsens, crude oil prices may increase to around $ 150 per barrel.
According to the Energy Minister, if the war prolongs, the energy producers of the Gulf region may have to declare a situation like ‘Force Majeure’. This means that due to extraordinary circumstances, companies can temporarily stop their supplies. If this happens, it may have a major impact on the global economy and the economic growth of many countries may slow down.
rise in crude oil
After the start of the war in the Middle East, there is a lot of activity in the international energy market. There has been a huge rise in the prices of crude oil and Brent crude has crossed the level of $ 80 per barrel. Concern about oil supply has increased due to increasing tension in the Middle East and the possibility of blockage in the important sea route, the Strait of Hormuz. This has had a direct impact on oil prices in the international market. In just two days, Brent crude jumped by about 9% and for some time it even crossed $ 85 per barrel. Not only oil, there has been a sharp increase in the prices of gas as well. It is clear from these incidents that the impact of the ongoing conflict in the Middle East is now visible on the global energy market and the world economy.
The economy may suffer major losses
Economists believe that if this conflict continues for several months, its effect will be seen in the form of rising inflation. Inflation will also not be limited to any one country. Its impact will be all over the world, because the increase in oil prices directly impacts the pockets of common people. Oil affects the cost of almost everything. Therefore, when crude oil becomes expensive, inflation also starts increasing. Due to oil becoming expensive, the cost of transportation, production and farming increases. This increased expenditure ultimately gets added to the prices of goods, due to which inflation increases in the market.
Inflation may increase in the world
According to a CNN report, inflation in Europe, which was around 2% in January, may increase by more than one percent. Due to this, economic growth may also reduce by about half a percent. The prices of petrol and diesel are increasing in many countries. According to ADAC, the prices of petrol and diesel have increased by double digits in Germany in the last one week. Due to which the pressure on small businesses is increasing. If oil prices remain at this level for several months, inflation may increase worldwide.
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