The impact of geopolitical conflicts far exceeds our imagination, especially the tension in the Middle East, which brings not just a simple rise in oil prices. In fact, behind this lies a ticking time bomb capable of shaking the foundation of the global economy—fluctuation in crude oil prices.

Looking at modern economic history, we can find a troubling pattern: the drastic fluctuations in oil prices are almost always a precursor to financial crises. Since 1973, when Arab countries first used oil as a political weapon, global financial markets have lived under the shadow of severe energy price fluctuations.

This connection has been repeatedly verified in history: the first oil crisis led the United States into severe stagflation, with a significant decline in the stock market; during the Iranian Revolution, the Federal Reserve was forced to raise interest rates to unprecedented levels, causing huge losses for global investors; during the Gulf War, the surge in energy prices combined with credit tightening severely impacted the U.S. economy; the 2008 financial crisis was superficially a subprime issue, but was actually closely related to the collapse of demand following the oil price bubble burst; even last year's Russia-Ukraine conflict caused global financial markets to experience severe fluctuations.

This raises a question: Are these financial crises really caused by fluctuations in oil prices? The causal relationship between war and economic crisis is as difficult to clarify as the chicken and egg problem, but it is undeniable that whenever the global economy faces significant challenges, fluctuations in energy prices always play a role in exacerbating the situation. Even more worrisome is that both the Middle East and Eastern Europe, two major global energy supply hubs, are currently caught in conflict, and this dual instability cannot be underestimated in terms of its potential impact on the global economy.

This is not an alarmist statement, but a rational analysis based on historical experience. When the energy market is turbulent, the value of our assets such as stocks, funds, and real estate will be affected by a chain reaction. Currently, the global capital market is extremely sensitive to every little change in the energy sector.

As ordinary people, although we cannot influence international situations, we can at least be clear about the significant impact of energy issues on personal wealth. In this era full of uncertainty, peace and stability are the most fundamental and important conditions for protecting asset value.