Washington: The Qatari finance minister has issued a warning about a potential economic fallout from the ongoing Iran war, emphasizing that the effects could worsen if the Strait of Hormuz remains closed and trade restrictions persist. Speaking at the International Monetary Fund's Spring Meetings, Ali bin Ahmed Al Kuwari highlighted that the current rise in energy costs might be just the beginning.

According to Anadolu Agency, Al Kuwari stressed that the full economic impact might be felt within one to two months. He expressed concerns over the continued disruption in the Strait of Hormuz, which could significantly affect countries reliant on imports of essential commodities such as natural gas, fertilizers, and helium.

The minister also addressed the additional strain caused by damage to Qatar's Ras Laffan liquefied natural gas facility in March. This facility, which contributes to nearly one-fifth of global LNG exports, was impacted as the conflict escalated following US airstrikes on Iran on February 28, leading to a global gas supply crunch. Al Kuwari estimated that it could take around five years to fully restore the damaged facilities and exports.

He further warned about the risks to helium exports, noting that Qatar provides approximately 30% of the world's helium, a crucial component for industries like chip manufacturing. The minister cautioned that the energy price shock could lead to broader shortages, with some countries struggling to secure adequate energy supplies, and fertilizer disruptions potentially increasing the risk of a food crisis.

The warning is issued amid ongoing disruptions in the Strait of Hormuz, a vital energy trade route, which has heightened concerns about prolonged supply shocks affecting fuel, industrial gas, and agricultural input markets.