Oil’s once-dominant impact on the global economy and geopolitics is becoming a thing of the past, Daily Telegraph financial columnist Matthew Lynn wrote.
According to Jin10, Lynn said the U.S.-Israel military action against Iran had appeared to be a “perfect storm” for energy markets, prompting some experts to issue the most extreme oil-price predictions. However, he said the feared disaster did not materialize.
Lynn noted that oil prices did spike at one point, but in real terms they did not set a historical record. He cited 2008, when oil reached $147 a barrel, which he said would be equivalent to $224 a barrel today.
He added that no one now expects emergency measures to curb energy consumption, and no one is worried about interest rates surging to 13% or unemployment rising sharply.
Lynn argued that the period from 1973 to 2026—what he described as a “long oil crisis”—has ended, and said this would have three major effects. First, he said the Middle East’s importance will decline significantly. Second, he said inflation will be restrained, adding that the United States could see little to no year-on-year change in prices for the next decade or longer. Third, he said the global economy will become more stable.
Lynn wrote that oil’s importance as a commodity has been weakening for years. He said oil remains important, but will be less likely to dominate headlines.
Analyst Says Oil’s Dominant Influence On The Global Economy And Geopolitics Is Fading
2026-06-23 11:05:44
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