Oil Just Sent a Terrifying Warning to the Entire Economy

Energy prices renewed their surge higher today. As it stands, WTI is now just shy of $80 per barrel, up 22% in a week. Wholesale gasoline is now above $2.60 per gallon, a 30% rise since last Thursday. These are the biggest short-term energy spikes we’ve seen since 2022. Because of that, we have to start seriously considering various potential paths for this burgeoning oil shock, up to and including a 1990 scenario where conflict in the Middle East sent energy prices skyrocketing and tipped a weak economy here and around the world into full-blown recession. Eurodollar University's Money & Macro Analysis