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Why energy shock from Iran war has not spread to food
April 15, 2026 2026-04-15 9:55Why energy shock from Iran war has not spread to food
Why energy shock from Iran war has not spread to food
In July 11, 2008, when Brent crude prices hit an all-time-high of $147.5 a barrel, the world experienced not just fuel inflation.
No less painful was global food inflation, which – based on the annual increase in the United Nations’ Food and Agriculture Organization’s Food Price Index – ruled at double-digits for 22 months in a row from November 2006 to August 2008, averaging 34.8% for that period.
It was the same during the oil shock following Russia’s full-scale invasion of Ukraine in late-February 2022. Brent crude went as high as $139.13 per barrel on March 7, 2022. Then too, elevated global oil prices were accompanied by double-digit inflation in the FAO index for 19 consecutive months from January 2021 to July 2022 and averaging 26.8% year-on-year.
