France warns of 'new oil shock' as Mideast crisis disrupts energy supplies

2026-03-24 - 20:50

French Economy Minister Roland Lescure warned Tuesday that escalating Middle East tensions risk triggering a "new oil shock" that could weigh on France's economic growth if disruptions persist. The warning came as the Strait of Hormuz remains effectively closed for a fourth week. Energy shock unfolding Speaking before the National Assembly's Finance Committee, Lescure said interruptions in oil flows from Gulf countries to global markets are already having tangible effects. "This situation constitutes a new oil shock," he said, referring to supply disruptions linked to the regional conflict. He cautioned that "if this energy shock persists beyond a few weeks, the crisis could spread more widely to the economy, and ultimately be of a more systemic nature." Regional context The minister's remarks come amid heightened tensions following the US-Israeli offensive against Iran launched Feb. 28, which has killed more than 1,300 people including former Supreme Leader Ayatollah Ali Khamenei. Iran has retaliated with sustained drone and missile strikes on Israel and Gulf states hosting US forces. The Strait of Hormuz, through which approximately 20 million barrels of oil normally pass daily, has been disrupted since early March, pushing global prices higher. Diplomatic developments US President Donald Trump announced Monday he had paused strikes on Iranian energy infrastructure, citing "very good and productive" talks with Tehran—a claim Iranian officials have denied. Despite the temporary pause, European economies remain vulnerable to prolonged supply disruptions as the conflict shows no signs of abating.