How the threat of war is roiling commodity markets

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Global economic headwinds appear to be intensifying. Geopolitical tensions are surfacing in different ways throughout the world, including international economic disagreements, potential wars, and social unrest.

Political, economic, and social events that impact international relations and trade are referred to as ‘geopolitical events.’

Fear of a potential invasion of Ukraine by neighboring Russia has been felt across the global commodity market.

A Russian invasion of Ukraine could be a dramatic risk-off event that could send shockwaves across markets. Stocks could plummet and commodities prices could skyrocket.

Traders need to fully recognise the risks a conflict would pose to the commodities market, particularly natural gas.

On the other hand, political instability in Latin America, US interest rates hike, Middle East’s uphill battle with rising energy prices are some of the key…

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