The escalating tensions between Israel and Iran are contributing to a “polycrisis” threatening global energy security,according to the head of Malaysian oil giant Petronas,as geopolitical instability and tariffs push prices higher.

Global oil prices have seen a sharp increase since Friday, following reported Israeli strikes inside Iran.Iran responded with missile and drone launches and has warned of potential closures of the Strait of Hormuz, a critical waterway for approximately one-fifth of the world’s oil supply.

Petronas, the Malaysian state oil company, has already taken measures to address the global economic downturn, including reducing its workforce by ten percent. The company has stated that these measures are necessary for its long-term survival.

Speaking at a Kuala Lumpur conference on Monday, Petronas Group CEO Tengku Muhammad Taufik pointed out that the global oil price experienced its most significant surge since 2022, driven by concerns about a potential supply disruption resulting from the Israel-Iran conflict.

“These seismic shifts of global conflicts, technological revelations and climate change [are] what Petronas has described as polycrisis,” Taufik said, adding that this was exacerbated by the projected population of the Asia-Pacific region that would rise to 5.2 billion in 2050.

Taufik emphasized the need for the Asia-Pacific region to diversify and expand its energy sources, noting that energy is no longer solely the domain of oil and gas companies.

“These seismic shifts of global conflicts,technological revelations and climate change [are] what Petronas has described as polycrisis.”

Understanding the “Polycrisis” Affecting global Energy