Energy leaders warn of global economic fallout from Iran war

Global energy leaders issued stark warnings at the annual CERAWeek conference in Houston, US, about the deep economic repercussions of the US-Iran war, stressing that a closure of the Strait of Hormuz and damage to production infrastructure could trigger a supply crisis extending beyond the energy sector to disrupt global supply chains.

Patrick Pouyanné, CEO of TotalEnergies, warned that the risk goes beyond energy prices, highlighting potential disruptions to helium shipments vital for semiconductor manufacturing and medical supplies.

Meanwhile, Sultan Al Jaber, CEO of ADNOC, said rising costs are threatening global growth and increasing the cost of living.

Amin Nasser, CEO of Saudi Aramco, canceled his planned participation in the conference—organized by S&P Global—as the Iran crisis entered its fourth week.

Mike Wirth, CEO of Chevron, noted that markets have not yet fully priced in the pressures stemming from a potential closure of the Strait of Hormuz, expecting a prolonged recovery, Reuters reported.

On the other hand, US Energy Secretary Chris Wright downplayed the severity of the crisis, stating that oil prices have not yet reached levels that would significantly dampen demand.

He emphasized that Washington “had no choice but to engage in the war,” pointing to measures aimed at stabilizing markets, including releasing oil from the strategic reserve and helping redirect shipments to China.

The conference drew more than 10,000 participants from over 80 countries, underscoring the gravity of the current crisis. It marks the second time in five years that the event has been held amid major global disruption in the energy sector, with attendance peaking on March 23 to the extent that some participants were unable to enter the halls.