IEA warns Hormuz blockage could hurt world economy this summer
Business
The International Energy Agency (IEA) says the ongoing blockage of the Strait of Hormuz, a vital route for global oil shipments, could seriously hurt the world economy by end of June, July, and August 2026.
With peak travel season coming up, pressure on energy supplies is expected to rise even more.
Fatih Birol says reopening Hormuz crucial
IEA chief Fatih Birol pointed out that Asia, especially developing countries, will feel the biggest impact from higher oil prices.
The IEA tried to help by releasing 400 million barrels from emergency reserves, which briefly lowered prices, but costs are still much higher than before.
Birol emphasized that reopening Hormuz is crucial to avoid long-term volatility and rising energy bills.