A big problem in the Middle East has caused a major energy shock. This started after US and Israeli attacks on Iran. Many countries are now facing economic problems. Oil prices have gone up a lot. This could lead to stagflation, which is high prices and slow economic growth. The International Energy Agency (IEA) says this is the worst disruption to oil and gas supply ever.
The main problem is with important shipping routes, like the Strait of Hormuz. Attacks have made it hard to move ships. This route is used for about one-fifth of the world's oil and gas. Because of this, Brent crude oil prices have risen to $102.90 a barrel. Experts worry about how long countries can get enough fuel. If the Strait is closed for three months, oil could cost $160 a barrel.
Governments around the world are taking action. Countries in Asia, Europe, and the US are trying to help people with high energy costs. They are using fuel subsidies and giving money to families. Some countries may use more nuclear and coal power. The IEA is releasing oil from emergency stores to help the market. The US has also made it easier to get Russian oil.
However, the problems are not just about energy. People are worried about rising prices. Central banks are changing their plans for interest rates. The US Federal Reserve might not cut rates until 2027. Gold prices have also gone down. This shows how people are feeling about the economy.
The global economy is facing big challenges. High energy prices and slow growth are causing worry. This is a difficult situation for leaders. Stock markets in Asia have fallen. However, Europe is investing in clean energy. This could help them become stronger. This new approach might help with the current problems.