A prolonged war continuing into the autumn and beyond would create a world energy shock similar to that of the 1970s, and cause huge economic dislocation. If world supply falls by 20 per cent because of the war, prices would have to rise very high to balance supply and demand. Higher energy prices transfer wealth from energy consumers to producers. The oil crises of the 1970s show what could happen if there is long-lasting energy disruption. Higher oil prices also encouraged exploration for fossil fuels, which resulted in a substantial drop in energy prices from the mid-1980s as new production began to flow.

Source: The Irish Times March 30, 2026 06:31 UTC