Rising energy prices could slow economic growth if crisis continues
France is warning that escalating conflict in the Middle East could trigger a major economic problem. Economy Minister Roland Lescure said the situation already looks like a “new oil shock,” meaning a sudden rise in oil prices that can affect economies worldwide.
Speaking to lawmakers, Lescure explained that disruptions in oil supply especially from Gulf countries are already being felt. If the situation continues for more than a few weeks, he warned, it could spread beyond energy and impact the entire economy.
A key concern is the Strait of Hormuz, where tensions have disrupted the flow of around 20 million barrels of oil per day. This has pushed global oil prices higher and increased costs for countries that rely on imports.
The crisis is linked to ongoing conflict involving the United States, Israel, and Iran. While Donald Trump recently announced a pause in strikes and mentioned possible talks, Iranian officials have denied that any negotiations are happening.
In simple terms, France fears that if oil supply problems continue, rising energy costs could slow down economic growth and create wider financial instability.
Source: Newstimehub
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