Since the beginning of the year, the stock market has experienced heightened volatility on concerns over the Fed’s forthcoming interest rate increases to control multi-decade-high inflation. Also, economic sanctions imposed on Russia have exacerbated the equities’ market correction.
Recessionary talk is circulating as oil prices climb to multi-year highs. And even though not every economic slump has been precipitated by an increase in crude oil prices, every increase has led to a recession. Russia’s invasion of Ukraine has invited strict financial sanctions on the country. The U.S. and United Kingdom have imposed bans on importing Russian oil. Such measures may lead to a further escalation in oil prices, fueling the current surge in commodity prices.
