Oil Supply Shock Ripples Through Fertilizer, Plastics, and Tech

Oil Supply Shock Ripples Through Fertilizer, Plastics, and Tech

The worst supply shock in the history of the oil market is spilling over to critical supply chains, threatening shortages of medical supplies, fertilizers, semiconductors, and everyday consumer goods, including textiles, footwear, and cosmetics. When the Strait of Hormuz is shut, it’s not only Asian refiners scrambling for crude oil to turn into fuels. The naphtha, ammonia, urea, and helium supply that the Middle East would typically export via …

Ruchir Sharma: Why this oil shock is different

The outcome of the Iran war remains unclear, but the resulting oil shock has revealed a novel vulnerability in the global economy. Never has the world entered a crisis of any kind with such high deficits and debt levels. This burden will limit the ability of governments to cushion the impact of elevated energy prices.

Beyond the oil shock

Disruptions in the Strait of Hormuz are pushing oil above $100 a barrel, threatening fertilizer supplies, semiconductor production, and global inflation

The Economic Damage Caused By This War Will Stretch To The End Of The Decade, And Shortages Will Go Way Beyond Oil, Gas And Fertilizer

Even if the Strait of Hormuz opened tomorrow, and that is certainly not going to happen, we are being warned that the economic impact of this war will be felt all the way through the end of this decade. A lot of energy infrastructure has already been destroyed during this war, and it will take years to rebuild it. And the crop losses that we will experience in 2026 due to a lack of fertilizer will be felt long into 2027. But the shortages that w…

Why this oil shock is different

Governments and central banks are out of policy ammunition to contain the economic fallout from the continuing conflict in the Middle East.