3 ms·
War is also excellent for business if it disrupts your competitors, and especially in liquid commodities where any shortage immediately bumps prices. For the m
by PeterisP 3y ago
War is also excellent for business if it disrupts your competitors, and especially in liquid commodities where any shortage immediately bumps prices.
For the major oil exporters any conflict happening in countries involved in oil production or transportation is a benefit, as it greatly bumps their profits at the expense of the oil consuming countries. Arguably some of the conflicts in places like Syria or Libya have been worse than they 'should' have been simply because there's a large financial motivation to send money and weapons to simply stir up trouble so that the global oil price hikes upwards; a major oil producer doesn't even prefer one side of a conflict, it can simply send some weapons to everyone involved and profit because the country and their oil production gets disrupted.
For the major grain exporters, a war happening in Ukrainian wheat fields is a big boon as it raises global grain prices. There IMHO the other interests are even larger, so this is not the decisive factor, but it does add up to many billions worth of incentives that likely are taken into account.
Now on the other hand, disrupting global trade is pretty universally bad for business, so if somebody (e.g. Houthis) attempt that, then we can expect everyone powerful treating them as 'hostis humani generis' i.e. enemy of all mankind, as piracy has been addressed since Roman times.