> EU was/is too heavily dependent on Russian oil and natural gas whereas the US has better isolation due to its domestic fuel production. Oil follows the "law

> EU was/is too heavily dependent on Russian oil and natural gas whereas the US has better isolation due to its domestic fuel production. Oil follows the "law of one price" globally; https://public.wsu.edu/~hallagan/EconS327/weeks/week9/LOOP.pdf https://public.wsu.edu/~hallagan/EconS327/weeks/week9/LOOP.p... global prices converge since it's an identical commodity that can be transported with low friction. When the EU restricts russian oil, India and China buy more, and then EU buys more oil from elsewhere -- it's a global market that readjusts relatively quickly. There is some short term friction around switching costs and infrastructure, moreso for volatile-to-transport gas than for oil, but this shouldn't be a meaningful factor to currency. There are tons of other impacts of war, such as general destruction of capital and people's productivity, as well as plenty of other explanatory factors that would have a bigger effect here.