The global economy faces a renewed challenge if the conflict that's choked the Strait of Hormuz isn't resolved in a matter of weeks, said International Energy Agency Executive Director Fatih Birol. The critical waterway handles about a fifth of global oil shipments, making any prolonged disruption a direct threat to energy security worldwide.

Birol emphasized that the current standoff has already tightened markets, with traders pricing in risk premiums not seen since previous Gulf tensions. While strategic reserves and alternative routing provide temporary buffers, they cannot offset a sustained closure of the chokepoint that sees roughly 21 million barrels per day transit its narrow channels.

The IEA chief urged diplomatic de-escalation, noting that the global economy remains fragile amid slowing growth and inflationary pressures. A protracted crisis would amplify price volatility, strain consumer spending, and undermine central bank efforts to stabilize markets. Energy importers in Asia and Europe would bear the brunt of supply shortfalls, potentially triggering broader economic contagion.