DHL Group CEO Tobias Meyer warned Bloomberg TV earlier this morning that a persistent Gulf energy shock could morph into broader trouble for the global economy.

"Well we have seen this before, that you have recognized by consumers as having an impact that sparks broader discussion, the real economic implications for people. Now, this hasn't happened yet. We're trying to prevent that from happening.The 10, 12 million barrels of crude oil per day, it will come to that tipping point. Solutions are needed and political momentum is building up to resolve the situation in the Strait of Hormuz," Meyer said.

Meyer's reference to the "tipping point" is clear: if Gulf oil losses of 10 to 12 million barrels per day are not offset soon, global energy and product prices will stay elevated,causing significant knock-on effects throughout the world economy.

DHL CEO Tobias Meyer says we are in danger of reaching a "tipping point" if energy supply issues aren't resolved in the Middle Easthttps://t.co/zTL9UKeCD7pic.twitter.com/Rg9gj1QuyY

DHL Group sits at the center of global trade.It operates parcel, express, air freight, ocean freight, and road freight, as well as supply chain services, across more than 220 countries and territories, suggesting thatMeyer is a seasoned observer of what to look for ahead of inflection points in the global economy.

Meyer pointed out that theUS-Iran conflict and the disruption of the Hormuz chokepoint are already affecting DHL operations, constraining transport routes, tightening freight markets, and pushing shipping rates higher, especially on Asia-Europe lanes.

He added that, with Western airlines avoiding Russian airspace and Gulf carriers operating below pre-war capacity, trade flows from India and Southeast Asia to Europe are becoming more strained.

Meyer is clear that failing to replace the loss of 10 million to 12 million barrels of crude oil per day in the Gulfwould almost certainly push the global economy to a "tipping point" from which there is no return.

Separately, the International Energy Agencyreleased a reportearly last week that stated, "The Iran war has thoroughly upended the global outlook for oil consumption.Demand destruction will spread as scarcity and higher prices persist."

JPMorgan's top commodity expert recently described how thedemand destruction crisiswould spread from the Gulf area, hitting Asia first, then Africa and Europe, before ultimately affecting the US, especially California.

Source: ZeroHedge News