Market history · Commodities ·
Russia's invasion of Ukraine triggers a commodity shock
After Russia invaded Ukraine on 24 February 2022, Brent crude moved above $100 a barrel for the first time since 2014 and reached around $128 in early March. Prices for natural gas, nickel, wheat and fertiliser also spiked, and trading in nickel on the London Metal Exchange was suspended after an extraordinary move.
The shock fed into already-high inflation, particularly in Europe, and reinforced central banks' resolve to tighten policy.
The takeaway
Geopolitical events can transmit into portfolios through inflation and rates, not only through directly affected assets.
Sources
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