The global economy faces a disruption in energy markets due to the situation around Iran

The world economy has survived the disruption in global energy markets caused by the US and Israeli attacks on Iran, but it has less and less room for new maneuvers, which means the prospects are becoming increasingly gloomy. This was reported by The New York Times (NYT).

It noted that Saudi Arabia was recently forced to shut down a vital pipeline, after which oil prices jumped to $110 a barrel.

Rising fuel costs have led to rolling blackouts and protests from Asia to Latin America. In the Philippines, fishermen did not go to sea because they could not afford fuel. In Bangladesh, power outages caused factories to shut down for many hours. In Guatemala, protesters burned tires and cars.

Energy inventories in the 38 Organization for Economic Co-operation and Development countries have fallen to their lowest levels in decades, according to the US Energy Information Administration. According to former American diplomat and energy expert David Goldwyn, oil prices will be between $80 and $100 per barrel until at least 2027. The International Energy Agency warned last week that inventories were dwindling and the global oil refining system was "running beyond its capacity."

In addition, disruptions to energy transportation routes in the Middle East will lead to higher inflation, which the Asian Development Bank expects to accelerate to 5.2 percent this year, up from 3 percent last year. In Europe, the UK and the US, inflation is likely to range between 3.5 and 4 percent.

The economy of Qatar, a leading exporter of liquefied natural gas, is projected to contract by 8.6 percent in 2026, according to the International Monetary Fund.

Japan and Indonesia, meanwhile, have already spent billions of dollars on fuel subsidies to help consumers weather rising prices. The yield on the 10-year U.S. Treasury note, a benchmark that influences interest rates and investments around the world, has reached critically high levels. And while the United States has so far relatively avoided the worst of the economic shocks, the situation could soon get worse.