Due to the increasing tension between the United States, Israel and Iran, the world is moving towards a new global energy crisis, which experts are calling the biggest oil supply shock in history.
According to reports, the price of crude oil has increased in the global market, the main reason for this is that about 20 percent of global oil production is said to be less than the market, which is about 20 million barrels per day.
According to experts, this situation arose when oil shipments were severely affected due to tension and blockade in the important sea passage of the Strait of Hormuz, which is considered very important for global energy supply.
As a result of regional tensions, major oil-producing countries like the UAE and Kuwait have also reduced production, while the situation has become more serious after the attacks on Iranian oil facilities. According to the International Monetary Fund (IMF), maritime shipping has decreased by 90%, the managing director of the organization says that important oil and gas facilities have been damaged, which has stopped energy supply.
According to the IMF, energy security is now becoming the biggest issue for Asia and most countries in the world. Similarly, the chief economist of the ANZ Group said that about 20% of the world’s crude oil is transported through this sea route, which is likely to continue to put pressure on oil prices.
On the other hand, the G7 countries have started considering releasing emergency oil reserves to maintain economic stability. According to energy experts, the current situation has surpassed even the worst fears that were previously imagined.
Experts say that if tensions do not ease, the effects of this crisis will not be limited to energy but may also have profound effects on the global economy, inflation and supply chains.
Read also: Pakistan secures 4 Crude Oil VLCCs to ensure uninterrupted fuel supply
