TotalEnergies Warns of Global Economic Impacts

The head of French energy giant TotalEnergies has warned that a prolonged conflict in the Middle East lasting beyond six months could have serious consequences for the global economy.

“If it’s more than six months, we will have some real impacts. All the economies of the world will be damaged,” CEO Patrick Pouyanne said in an interview with Chinese state broadcaster CGTN.

Iran’s effective closure of the Strait of Hormuz, in response to US-Israeli strikes, has significantly disrupted global oil supply and heightened concerns among governments about rising inflation and slowing economic growth.

Pouyanne explained that under normal conditions, about 20 per cent of the world’s oil production passes through the strait, but due to the current situation, “what is stuck today, you have 10 million barrels of oil per day which cannot exit” the Gulf.

“And we cannot find the oil elsewhere in the planet,” said the energy chief, who spoke on the sidelines of the China Development Forum in Beijing.

“If this conflict lasts three, four months, we can swallow it. Today we manage to amortise this shock because we have inventories,” he said.

However, he cautioned that any conflict lasting more than six months would significantly damage the global economy.

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Toyibat Ajose

Toyibat is a highly motivated Mass Communication major and results-oriented professional with a robust foundation in media, education, and communication. Leveraging years of hands-on experience in journalism, she has honed her ability to craft compelling narratives, conduct thorough research, and deliver accurate and engaging content that resonates with diverse audiences.