English News

  • youtube
  • facebook
  • twitter

Surge in crude oil prices due to Ukraine war hits global economy

Pakistan's crude oil problems continue

The rupee on Monday hit a record low of over 77 to a US dollar amid rising geopolitical tension as the Russia-Ukraine conflict intensified. Crude oil prices have already surged. On Monday Brent oil price was over 124 a barrel while WTI crude was over 122 a barrel– the highest since 2008. Talks on Iran's 2015 nuclear deal have now been hit as Russia demanded written guarantees that its economic trade with Tehran will be exempted from the sanctions imposed by the US.

However, US Secretary of State Antony Blinken dismissed the Russian demand saying they were "irrelevant."

Earlier, Reuters in a report said that the announcement by Russia, which could torpedo months of intensive indirect talks between Tehran and Washington in Vienna, came shortly after Tehran said it had agreed a roadmap with the U.N. nuclear watchdog to resolve outstanding issues which could help secure the nuclear pact.

Also read: Sanctions against Russia disrupt global supply chain network

Meanwhile, supply chain disruptions have already started denting global trade following the stringent sanctions against Russia. This could delay the post Covid 19 pandemic economic recovery process across the world.

While the sanctions imposed against Moscow will cripple the Russian economy, they will have an impact on other economies as well.

“The pain will not be confined to Russia alone though it will have to bear the maximum impact and its economy will be in tatters. The sanctions will be painful for global economy and its recovery process,” an analyst said.