Global Perspective: Economic expansion worldwide is hindered by the energy crisis

Unexpected Turbulence in Early 2025

In our December 2025 quarterly outlook, we advised readers to brace themselves for potential volatility. That warning proved timely, as the new year began with a significant upheaval. While US import tariffs remain an unresolved concern—covered in our analyses of American tariff changes and their effects on EU-US trade—this time, the disruption stems from conflict in the Middle East, which has sent shockwaves through global energy markets.

Once again, Europe faces the stark reminder that international political events can swiftly reshape economic prospects. The outbreak of hostilities in the Middle East triggered a rapid, worldwide economic disturbance, underscoring how quickly the global landscape can shift.