Iran Israel USA War: Saad al-Kaabi, the energy minister of Qatar, has issued a massive warning that world economies could crush heavily because of the Middle East crisis.
Kaabi remarked that energy exporters in the Gulf region could be forced to shut down the production of crude oil within weeks or force to adopt “Force Majeure” even if the war ends in a week.
Iran Israel USA War-Impact On Global Economies
In an interview, Kaabi stated that gross domestic product growth across the world could see a crushing impact as energy prices would see a massive surge. The energy minister of Qatar commented that there is likely to be an acute shortage of certain products and it would cause a chain reaction of factories unable to supply.
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Kaabi went on to remark that prices of crude oil could soar as much as $150 a barrel in the coming 2-3 weeks if tankers as well as other forms of merchant vessels are not able to pass via the Strait of Hormuz that has been temporarily blocked by the Islamic Republic of Iran.
Kaabi said gas price may soar to $40 per million British thermal units, which would be four times the pricing level they were before the joint forces of Israel and the United States waged a war on Iran.
On Friday, Brent Crude oil rose to $87, which is the highest since April 2024.
What Is Force Majeure?
Force Majeure allows parties to a contract to avoid any form of liability if they are unable to meet their contractual obligations because of unforeseen circumstances such as a war. The Qatari energy minister said exporters who have not yet called for it would be forced to do in the upcoming days.
A massive surge in oil prices across the world could even force developed economies such as the United States and developing economies like India to experience a massive drop in gross domestic product. Inflation could go up as prices of every product may increase significantly. This could lead to massive income disparities between the rich and the poor while putting businesses and economies at risk, forcing global recession round the corner.
