The global economy has been catapulted into a "major energy and economic" crisis, the world`s leading energy economist said Thursday, after oil prices had spiked overnight, writes CNN.

"The executive director of the International Energy Agency (IEA) forecasted "big difficulties" and "environmental issues" as regional leaders scramble to find alternative energy sources.

"Almost four-and-a-half months ago, we stated that the world is facing the biggest energy crisis in history," Fatih Birol told a press conference in Paris. "What is happening now shows that unfortunately we were right. The oil markets and gas markets are going through big difficulties".

The US-Israeli assault on Tehran and subsequent retaliatory Iranian attacks triggered major economic repercussions beyond the Middle East. Earlier on Thursday, prices of brent crude oil, the global benchmark, spiked above $125 per barrel. They later fell to $116.

That uptick in oil prices – compounded by the strained flow of ships through the key Strait of Hormuz – is "putting a lot of pressure on many countries," Birol said, adding that supplies of fertilizers and petrochemicals "are all interrupted": "Our world is facing a major energy and economic challenge. We will see how this energy crisis will affect the energy world, and environmental issues".

Human rights officials have repeatedly highlighted the disproportionate impact of the violence in nations heavily reliant on imports from the Gulf, citing increasing hunger in Asia and Global South".