Oil has remained a key energy source in the 21st century, and price volatility is having a significant impact on the economies of countries around the world. At the time of the pandemic, demand for oil plummeted due to the slowdown in economic activity. However, oil prices have risen sharply since then, well above the USD 100 a barrel level, thanks to a strong post-closure economic recovery. As the economy grows, so does the demand for oil. Nevertheless, the war between Russia and Ukraine and the growing geopolitical tensions in the Middle East are generating supply-side fears. All of this is contributing to both rising inflation and concerns about economic recovery.
Keywords: Middle East, economy, oil, inflation
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