Global Markets Reel from $330 Billion Oil Price Shock

A recent study by the Centre for Research on Energy and Clean Air (CREA) found that global markets have incurred an estimated $330bn in extra costs since the conflict in the Middle East led to a sudden oil price increase.

The surge in oil prices was caused by shipping disruptions through the Strait of Hormuz, resulting in higher energy costs for much of the world. South Africa accounted for at least $3.5bn (R56.3bn) of this cost.

According to CREA's study, the highest gross extra costs were faced by the EU ($78bn), China ($35bn), and India ($22bn). The typical low- or middle-income country paid about twice as much relative to GDP as the typical high-income country.