Why surging oil prices are a shock for the global economy – but not yet a crisis

Written by The Conversation

Global oil markets have reacted swiftly to escalating tensions in the Middle East as the United States and Israel continue their assault on Iran.

After oil tanker traffic through a key chokepoint, the Strait of Hormuz, stopped, the benchmark oil price, Brent crude, jumped about 6% to over US$77 a barrel. It initially spiked as high as US$82, its...

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