The Chief Executive Officer of TotalEnergies, Patrick Pouyanne, has issued a sobering alert regarding the current regional conflict in the Middle East.
In a recent discussion with international media, Pouyanne highlighted that while the world can currently "swallow" short-term disruptions, a war extending beyond six months would cause "real impacts" that no nation can escape.
According to the energy chief, the global economic outlook is at a tipping point; if the fighting drags on, all the economies of the world risk severe damage.
The primary driver of this fear is the Strait of Hormuz, a vital oil transit route that has been effectively throttled.
Under standard operations, nearly 20 per cent of global oil production flows through this narrow passage.
However, due to escalating tensions involving Iran, Israel, and the United States, approximately 10 million barrels of oil per day are currently stranded in the Gulf.
Pouyanne warned that this massive volume of crude oil simply cannot be replaced by other sources on the planet.
While existing oil inventories are currently helping to amortise the shock, these reserves are not infinite.
If a resolution is not found quickly, the world faces a future of rising inflation and slower economic growth that could destabilize
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