The ongoing geopolitical tensions in the Hormuz region have raised questions about the resilience of oil markets. Historically, such shocks can lead to significant price fluctuations and economic instability.
Recent improvements in oil intensity have helped mitigate some of the immediate impacts on the global economy. This means that while prices may rise, the overall economic fallout could be less severe than in previous crises.
However, the interplay between market conditions and political decisions is crucial. Policymakers may be tempted to make hasty choices in response to market pressures, which could exacerbate the situation.