Exploring the Connection: Regional Conflicts and Global Energy Price Increases
Regional conflicts produce outsized effects on global energy prices because energy markets are tightly interconnected, depend on concentrated geographic infrastructure, and respond quickly to changes in perceived risk. A disruption localized to one country or shipping corridor can propagate through supply chains, trigger speculative and insurance-driven price adjustments, and force demand-side and policy reactions that amplify price movements worldwide.How regional events translate into global price shocksSupply disruption and chokepoints: A significant share of hydrocarbon resources moves through confined transit routes and a limited number of export hubs. When pipelines, ports, or straits face threats, the volumes accessible to global buyers…
