Is the world at risk of another energy shock?

Core Impact Points

• Disruptions in the Strait of Hormuz, Bab al-Mandeb, and the Black Sea threaten global oil supplies, with Goldman Sachs predicting oil prices could rise above $120 a barrel by the fourth quarter.
• The US economy could be severely impacted by higher oil prices, which could lead to increased inflation, reduced consumer spending, and a potential recession.
• The global energy crisis is exacerbated by low oil reserves, which sit at multiyear lows, making the situation even more precarious.
• Ukrainian strikes have hit Russian export infrastructure, further disrupting global energy supplies and adding to the risk of an energy shock.
• The US and other countries are bracing for the potential economic fallout of an energy shock, which could have far-reaching consequences for businesses, consumers, and governments.