Mar 22 • 15:41 UTC 🇶🇦 Qatar Al Jazeera

Total CEO warns: What will happen to the global economy after 180 days of war on Iran?

The CEO of Total warns that a prolonged conflict in Iran could significantly impact the global economy, especially if the war extends beyond six months.

Patrick Pouyanné, the CEO of the French oil company Total, has warned about the serious implications that a sustained conflict involving Iran could have on the global economy. Speaking to CGTN, he expressed that if the U.S.-Israeli war against Iran continues for more than six months, the repercussions would be felt globally. He emphasized that the potential closure of the Strait of Hormuz, which is a critical maritime passage for 20% of the world's oil and gas, could effectively result in a halt of 10 million barrels of oil leaving the Gulf daily.

He elaborated that a conflict lasting for three to four months might be manageable due to reliance on existing oil reserves, which could cushion the impact of such a shock to the economy. However, he highlighted the urgency of finding a rapid resolution to the hostilities to prevent long-term economic damages. This warning comes in light of Total's operations being affected in various maritime fields due to the ongoing war, which has led the company to freeze activities accounting for approximately 15% of its total production.

The analysis by Pouyanné points to a critical intersection of geopolitical conflict and economic stability, illustrating how military engagements can have profound and far-reaching implications on global oil supply and, consequently, on international economic health. His comments serve as a call to action for timely diplomatic solutions to provide stability in the region and the global market.

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