The head of the International Energy Agency (IEA) announced at a conference in Australia that 40 major energy facilities in the Middle East have been severely damaged in recent conflicts. He warned that the crisis, triggered by the war in Iran, poses a severe threat to the global economy.
Previously, Iran's action to close the Strait of Hormuz in retaliation for a US invasion had already exacerbated volatility in the international oil market. The IEA chief believes that the current global energy crisis caused by the conflict between Iran and related countries could be more severe than the combined impact of the crises in 1970 and 2022. He called on the international community to seek peaceful solutions as soon as possible, as no country will be able to escape this economic shock if the conflict continues.
Energy Assets: Why Become Attack Targets?
The Iranian government had previously stated its position: if its energy facilities were attacked, it would destroy all energy, information technology, and desalination infrastructure in the region owned by the United States and Israel in response.
Global Markets: How to Cope with Escalating Situation?
As the war in Iran enters its fourth week, its impact on the global economy is becoming increasingly apparent. Since the outbreak of the war on February 28, global oil prices have risen by 40%-60%. Before the war, crude oil prices hovered around $70 per barrel, but have now climbed to over $100 per barrel, and even touched $115 at times of high tension and uncertainty. Although oil prices have seen some pullbacks, global consumers have clearly felt a significant increase in gasoline prices in a short period.
Meanwhile, the price of gold, often considered a safe-haven asset during times of global uncertainty, has fallen by about 15%-18% since the start of the war. The stock market has also been impacted, with the S&P 500 index falling by approximately 5% during the same period.
However, the cryptocurrency market has shown surprising resilience during this period of global uncertainty. Despite price fluctuations in the early stages of the conflict, Bitcoin and Ethereum prices subsequently outperformed gold and stocks, both achieving approximately 10% gains in the same period.