The Chief Executive Officer of TotalEnergies, Patrick Pouyanne, has warned that an extended conflict in the Middle East could significantly damage economies worldwide.
Speaking during an interview with China Global Television Network (CGTN), Pouyanne noted that the global economic outlook would deteriorate sharply if the crisis lasts longer than six months.
He explained that escalating tensions involving Iran, particularly moves to restrict access to the Strait of Hormuz, are already disrupting global oil supply.
The Strait of Hormuz is a vital channel through which roughly 20 percent of the world’s oil production is transported. Its disruption has left about 10 million barrels of crude oil per day unable to leave the Gulf, raising concerns about inflation and slower economic growth globally.
Pouyanne stressed that replacing such a large volume of oil supply would be extremely difficult, noting that alternative sources are limited.
He made the remarks on the sidelines of the China Development Forum in Beijing, where global business leaders gathered to assess economic risks and opportunities.
Despite the current strain, he said the global economy could manage the shock if the conflict is short-term, as existing oil reserves and supply mechanisms are helping to cushion the impact.
However, he cautioned that if the crisis persists beyond six months, it could pose serious threats to global economic stability, expressing hope for a swift resolution to restore balance in energy markets.