Total CEO: Iran war disruption that goes beyond 3-4 months is a systemic threat to the global economy

Patrick Pouyanne, CEO of TotalEnergies, said that a 'disruption in global energy supply from the U.S. and Israeli?war against Iran? lasting beyond three to four months would pose a serious systemic risk for the global economy.

Pouyanne, speaking at the CERAWeek conference in Houston, said that the disruption of global fuel supplies was worse than disruptions to crude oil supply?because they were exacerbated by an export ban from China on products such as diesel, gasoline, and jet fuel. China banned exports in order to maintain sufficient fuel supplies at home during the crisis.

Pouyanne stated that the ban on fuel supplies in Southeast Asia has rendered them unsustainable.

The U.S. and Israeli war against Iran, and Tehran's attacks against Gulf neighbors, have caused major damage to energy facilities. Shipping through the Strait of Hormuz – which handles around 20% of?global liquefied gas and oil flows – has almost come to a halt.

Pouyanne praised Total's investment in electricity as the company continues to invest both in renewable energy and gas-fired plants.

Total signed two long-term contracts in February to'supply solar energy to Google data centers in Texas. In 2025, the company will sign a 15-year agreement to provide 1.5 terawatt-hours of renewable electricity to Google from its Montpelier Solar Farm in Ohio. (Reporting and editing by Mark Porter, Nia Williams and Stephanie Kelly)

(source: Reuters)