Global oil prices plunged nearly 40% this week, reaching lows unseen since 2014, as geopolitical tensions in the Middle East and surging production rates destabilize markets. Economists warn this collapse could trigger inflation shocks and recessions in oil-dependent nations.
Key factors include halted exports from major producers due to escalating conflicts and a glut of U.S. shale oil. Energy analyst Clara Mertz states,
'This is not just a market correction—it’s a systemic crisis with no quick fix.'
The fallout includes:
- Stock market drops in energy sectors
- Emergency OPEC+ meetings
- Renewed focus on renewable energy transitions
While consumers may see short-term relief at gas pumps, experts urge governments to brace for long-term economic turbulence. Global energy policies now face unprecedented scrutiny.
