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WASHINGTON: The heads of the International Monetary Fund, World Bank and International Energy Agency warned on Friday of the risks to fuel security during peak demand summer months if oil shipping through the Strait of Hormuz does not return to normal.
“Global oil inventories are being drawn down at a record pace in response to the major loss of supply through the Strait of Hormuz,” the heads of the agencies said in a joint statement.
“If shipping flows do not return to normal, continued rapid depletion of global oil inventories ahead of peak summer oil demand in the Northern Hemisphere would present increasing risks for fuel security, market conditions, and broader economic resilience.”
The US-Israel war on Iran has engulfed the Middle East in conflict, with Tehran’s retaliatory action targeting Washington’s regional allies and virtually blocking the key waterway, through which a fifth of global energy supplies normally pass.
