Article by Brad Reed republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0).

“We are living on borrowed time,” said one economist about global oil prices.

With no end in sight to the Strait of Hormuz crisis caused by President Donald Trump’s illegal war with Iran, the head of the International Energy Agency warned Monday that global energy supplies are running dangerously low.

IEA executive director Faith Birol told reporters in Paris that the world only has weeks’ worth of oil reserves left, raising the likelihood that energy prices will soar even higher in the near future.

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Birol said that oil inventories are “declining rapidly” and added that there was “a perception gap in the markets between the physical markets and the financial markets,” as the price of oil in futures markets has not yet risen to a level that accurately reflects the coming supply crunch.

In his remarks to the press, given on the sidelines of a G7 gathering taking place this week in France, Birol warned that it’s only a matter of time before the supply shortage of fertilizer, which was also caused by the Iran War, leads to a surge in food prices that “might give a big push to inflation numbers.”

The Financial Times reported on Sunday that energy markets are approaching a “tipping point” where prices could see another upward surge that would throw the global economy into a recession.

Paul Diggle, chief economist at fund manager Aberdeen, told The Financial Times that he has been modeling the economic impact of oil hitting $180 per barrel, which he said would set off a global inflation crisis.

“We are taking that outcome very seriously,” Diggle said. “We are living on borrowed time.”

Oil prices briefly fell last month after the US and Iran announced a ceasefire agreement. However, the Strait of Hormuz has remained closed throughout that period, and Trump is reportedly preparing to restart attacks on Iran in the near future if no deal to reopen the strait is reached.

In a Sunday Truth Social post, Trump again threatened Iran with destruction unless it agrees to his demands.

“For Iran, the Clock is Ticking, and they better get moving, FAST, or there won’t be anything left of them,” the president wrote. “TIME IS OF THE ESSENCE!”

Article by Brad Reed republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0).