economy
Middle East crisis could cost world $1tn while oil firms make ‘obscene’ profit, analysis finds
Climate group calls for urgent windfall tax on excess fossil fuel profits, as delegates tell Colombia conference their nations are suffering
TL;DR
- The Middle East oil and gas crunch could cost the global economy up to $1 trillion in additional costs.
- Petroleum companies are reporting spectacular profits from elevated fuel prices.
- The crisis is worsening global inequality, poverty, and hunger.
- Analysis by 350.org suggests the economic burden could reach $600bn even if operations return to normal, and exceed $1tn if disruptions continue.
- The costs do not fully account for inflation, higher food and fertilizer costs, lower economic activity, and rising unemployment.
- BP's first-quarter profits more than doubled due to increased oil and gas prices linked to the Middle East conflict.
- 350.org advocates for an urgent windfall tax on excess profits to fund social protection and renewable energy investments.
- A conference in Santa Marta, Colombia, discussed transitioning away from fossil fuels, with representatives from over 50 nations.
- Nations like the Marshall Islands, Malawi, and Ghana are experiencing severe energy crises, leading to reduced services, increased poverty, and potential civil unrest.
- Governments worldwide are spending vast sums subsidizing the fossil fuel industry, with minimal benefit to the poorest households.
- Ending fossil fuel subsidies could prevent 70,000 premature deaths annually from air pollution.