Russia’s invasion of Ukraine is unleashing the biggest commodity shock since 1973
Russia’s invasion of Ukraine unleashed turmoil in energy, metals, and food markets. Overall indices of commodity prices are now (as of March 12, 2022) 26% higher than at the start of 2022. The price of Brent crude oil is around the levels that indicate the biggest supply shock since Saddam Hussein’s invasion of Kuwait in 1990. European gas prices have almost trebled amid the panic. The price of nickel has spiraled so high that trading in London was halted. As a result, global inflation, already at 7%, may rise to 9-10%.