Economic warfare is a costly endeavour. The West has been trying for weeks to hinder Russia’s invasion of Ukraine by debasing its currency and prohibiting its exports. On the Russian economy, this is having the desired effect. However, wheat, industrial metals, Matryoshka dolls, and, most importantly, energy users in the United States have become collateral damage. Russia has produced around 10% of the world’s oil in recent years, and 3% of America’s.
Now that Russian crude is prohibited from entering the United States, obtaining it has become more logistically complex and reputationally risky for traders around the world. Even before the start of the war, the global economy’s quick recovery from the COVID recession, along with years of underproduction in the fossil-fuel sector, were pushing up energy Prices.
Meanwhile, the Prices of gasoline is one of the few economic indicators that accurately predicts a president’s electoral prospects. High fossil-fuel Prices are a particularly difficult liability for a Democratic president. The current increase in oil costs has nothing to do with the climate goals of the Biden administration. Republicans, on the other hand, are working hard to persuade people otherwise.