18 days ago
CNBC Sep 2, 2026

‘Danger zone of extreme weather’: UN warns of supersized El Niño set to hit global economy and markets

The United Nations has issued a stark warning about an unprecedented El Niño event intensifying into a “supersized” phenomenon lasting until February 2027. Secretary-General António Guterres described the situation as entering a “danger zone of extreme weather,” with elevated risks of floods, droughts, and severe heatwaves worldwide. This climate anomaly is already causing significant disruptions in Asia-Pacific and Latin America, threatening communities and economies with widespread damage.

Celeste Saulo, secretary general of the UN World Meteorological Organization, highlighted the growing devastation from drought and flooding linked to El Niño. Countries such as Guatemala, Honduras, El Salvador, Peru, and Indonesia are facing serious consequences, including severe crop losses and wildfires. The disruption extends to key commodities like corn, cocoa, coffee, and anchovy fishing, which are critical to global food and livestock feed supplies, indicating looming impacts on international commodity markets.

The climate event’s influence is also expected to cause unpredictable shifts in energy supply and demand by affecting hydropower, wind, solar generation, and oil and gas operations. The exposure of subsurface Pacific Ocean waters to temperatures up to 8 degrees Celsius above average underscores the severity of this event. The extreme ocean warming signals a substantial departure from normal El Niño conditions, intensifying the potential for environmental and economic stress.

Overall, the intensifying El Niño threatens to exacerbate volatility in food and energy markets while deepening the strain on vulnerable regions. As global leaders race to implement climate action, the event starkly illustrates the economic risks posed by accelerating environmental changes. Stakeholders across agricultural, energy, and financial sectors are being urged to brace for ongoing disruptions and heightened risks through early 2027.

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