Economies warn of summer fuel crisis
International organizations, including the International Monetary Fund and the International Energy Agency, have warned of a severe oil shortage this summer if the closure of the Strait of Hormuz continues, through which about one-fifth of global oil and liquefied natural gas exports pass. The statement pointed to a record decline in oil inventories due to disrupted navigation, which could lead to higher energy and fertilizer prices, and increase risks to energy security and global economic stability. The repercussions are piling up on fragile economies, with these organizations estimating that these countries may need financial assistance ranging from $20 billion to $50 billion.
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