MacroCommoditiesKey event

Strongest El Niño in 150 Years Forming, Scientist Warns at July 23 Briefing

Published: Updated: By 24TopNews Editorial Desk

Berkeley Earth climate scientist Zeke Hausfather warned on July 23 that the strongest El Niño in 150 years is forming. Since June, Pacific sea surface warming and wind patterns have intensified rapidly. Fourteen climate models predict a median peak sea surface temperature 0.8 degrees Celsius higher than the 2015-2016 record. The previous strong El Niño in 1997-1998 caused $5.7 trillion in global economic losses. The short two-year interval since the last event raises questions about whether human-caused climate change is shifting the ENSO cycle.

Since June, the Pacific sea surface warming and strong wind patterns characteristic of El Niño have been rapidly intensifying. Data from 14 climate models predict that the median peak sea surface temperature will be about 0.8 degrees Celsius higher than the record 2015-2016 event.

The accompanying heatwaves, droughts, floods, and wildfires will have global economic impacts. Previously, the strong 1997-1998 El Niño caused climate anomalies that led to a global economic contraction of $5.7 trillion over the following years. Additionally, El Niño stresses ecosystems and oceans, reducing their ability to absorb carbon from the atmosphere, and warming seas exacerbate coral bleaching.

Notably, this El Niño comes only two years after the last one. Its real significance is whether it signals that human-caused climate change is systematically shifting the ENSO cycle. Researchers are still debating whether this trend can be seen in existing climate observations. Currently, the climate system is in a transition period, and it will only stabilize once humans stop emitting carbon dioxide.

24TOPNEWS IMPACT INTELLIGENCE

Why this event matters

The event has a measured impact on 6 industrys. The strongest current signal is negative for Crop Production, with intensity 75/100 and 65% confidence over a medium term horizon.

Agriculture · 4.1

Crop Production

Direction
negative
Intensity
75
Confidence
65%
Horizon
Medium term
Effective impact -39
Agriculture · 4.2

Fisheries

Direction
negative
Intensity
70
Confidence
60%
Horizon
Medium term
Effective impact -34
Food & Beverages · 5.1

Staple Food Processing

Direction
mixed
Intensity
65
Confidence
60%
Horizon
Medium term
Effective impact 0
Agriculture · 4.3

Livestock

Direction
negative
Intensity
60
Confidence
55%
Horizon
Medium term
Effective impact -26
Financials · 14.8

Property & Casualty Insurance

Direction
negative
Intensity
55
Confidence
55%
Horizon
Medium term
Effective impact -24
Energy · 1.9

Hydropower

Direction
mixed
Intensity
50
Confidence
50%
Horizon
Immediate
Effective impact 0

Impact figures are analytical estimates that combine direction, intensity, confidence and event importance. They are not investment advice.