Global economic shock looms: Putin issues nightmare warning over Iran as vital sectors face massive hit

The global economy is on high alert as the escalation of the conflict in the Middle East threatens to trigger a systemic shock comparable to that of the coronavirus pandemic.

In a fiery intervention, Russian President Vladimir Putin is sounding the alarm, describing a "new reality" where international markets are plunging into uncharted waters. As vital trade arteries are blocked and supply chains suffer crushing blows, Moscow warns that the cost will be unbearable not only for the region but for the entire planet. The balances in energy, metals, and food now hang by a thread, while the Kremlin speaks of consequences that even the protagonists of the war are unable to predict.

The world in uncharted waters

"The consequences of the conflict in the Middle East are currently difficult to predict with accuracy. It seems to me that those involved in the conflict cannot predict anything themselves, but for us, it is even more difficult," Putin stated while speaking at the plenary session of the Russian Union of Industrialists and Entrepreneurs (RSPP).

The Russian President noted that the conflict in the Middle East "is contributing increasingly tangibly to the current situation and causing significant damage to international logistics chains, production, and cooperation." "Entire sectors related to the extraction and processing of hydrocarbons, metals, the production of fertilizers, and many other goods have come under pressure," Putin underlined.

The pandemic nightmare returns

However, he added that Russia must survive under the conditions in which these events are unfolding. "It is true that estimates are already being heard comparing them to the coronavirus pandemic, which, let me remind you, abruptly slowed the growth of all regions and continents without exception," the Russian President added.

Risk of war spreading

Meanwhile, Kremlin spokesman Dmitry Peskov warned of the danger of the war spreading further across the Middle East.

"The risk of a further expansion of the geography of the conflict in the Middle East still exists," he stated while speaking to "Perviy Kanal."

Peskov emphasized that there is a risk of negative economic consequences for both the countries of the region and the "global economy." These are risks that "have already occurred." And these are precisely the consequences that everyone will be called upon to "confront and somehow minimize," he added.

As the Kremlin spokesman noted, Russia hopes that efforts are being made to move the entire process onto a peaceful path. "At present, any efforts aimed at a peaceful settlement of the conflict deserve support and are welcome," the Kremlin spokesman underlined.

www.bankingnews.gr