The prices of raw materials, from oil to aluminum, but also that of wheat, have hit their highest weekly level since 1974 and since the day of the oil crisis.
Wheat prices jumped 40 percent on the Chicago Board of Trade to its highest level since 2008 amid deepening fears of a global shortage as the Ukraine war cut off about a quarter of world exports of basic foodstuffs used in everything from bread to cookies and pasta.
Russia’s growing isolation is distrupting major sources of energy, metals and crops, raising fears of prolonged shortages and sharper global inflation. Merchants, banks and shipowners are increasingly avoiding doing business with Russia due to difficulties in securing payments, while shipping lines cancel or refuse bookings from the region.
The International Energy Agency has warned that global energy security is at stake, and the planned release of emergency oil reserves by the United States and other major economies has failed to alleviate supply concerns.
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