Story perspectives

Middle East Conflict Threatens Oil Market and Social Security

3/13/2026

Center

Investors Fear Oil Disruption

Investors worry that the ongoing conflict in the Middle East is disrupting the global oil market.
Deutsche Bank's Jim Reid warns that oil prices above $100 per barrel could lead to stagflation and recession risks if sustained.
U.S. President Donald Trump's policies threaten Social Security funding and could lead to insolvency.
Researchers estimate that without intervention, Social Security benefits could be cut by 24% by 2032, worsening wealth inequality.

Left

Krugman Critiques Cronyism

Paul Krugman accuses the administration of U.S. President Donald Trump of crony capitalism that favors loyal firms for contracts over the best value.
He says this practice undermines governance and corrupts politics.
Amid the ongoing war with Iran, Krugman warns that rising oil prices and military needs worsen the situation.
He notes that Republicans would call a Democratic administration’s similar practices treasonous.

History

Historical Context

The 1973 Oil Crisis began when OPEC imposed an embargo on nations supporting Israel during the Yom Kippur War, causing oil prices to quadruple from $3 to nearly $12 per barrel. This led to stagflation in the U.S., with inflation reaching 11% and unemployment rising. Today, oil prices exceeding $100 per barrel evoke similar economic fears, underscoring ongoing vulnerabilities in oil-dependent economies.

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Investors Fear Oil Disruption

Investors worry that the ongoing conflict in the Middle East is disrupting the global oil market.
Deutsche Bank's Jim Reid warns that oil prices above $100 per barrel could lead to stagflation and recession risks if sustained.
U.S. President Donald Trump's policies threaten Social Security funding and could lead to insolvency.
Researchers estimate that without intervention, Social Security benefits could be cut by 24% by 2032, worsening wealth inequality.

1 / 3