Geopolitical Tensions Affect Global Oil Supply Chains

When conflicts escalate, they impact supply chains through physical infrastructure damage, threats to maritime chokepoints like the Strait of Hormuz, and economic policy warfare.

Consequently, oil prices often spike due to uncertainty, fueling global inflation and raising transportation costs.

Historically, events like the 1973 oil crisis or the 1979 Iranian Revolution demonstrate how sensitive the global economy is to supply shocks.

In today's interconnected landscape, nations are moving toward energy autonomy and 'friend-shoring' to mitigate these risks.