TotalEnergies CEO Warns of Economic Risks from Middle East War

Patrice Pouyanné, the CEO of TotalEnergies, expressed concerns regarding the global economy's stability if the ongoing conflict in the Middle East continues for more than six months. In an interview with Chinese state broadcaster CGTN, he indicated that the situation could lead to significant economic consequences worldwide.

Pouyanné noted that 20% of global oil products typically pass through the Strait of Hormuz, and any disruption could severely constrain supply, leading to inflation and slower economic growth. He emphasized that the current conflict has already left substantial volumes of crude oil stranded, making it extremely difficult to replace disrupted supplies.

While he acknowledged that the global economy can withstand short-term shocks due to existing oil inventories and supply management mechanisms, he warned that a prolonged crisis could pose serious risks to global economic stability. Pouyanné expressed hope for a quick resolution to the conflict and stressed the importance of stabilizing the global energy supply chain.