Oil prices dipped to near two-week lows, but increasing costs of fuel raised fears of broader economic fallout.
US President Donald Trump voiced support for a diesel export ban to tame record prices, and has reportedly pressed Ukraine’s leader to stop attacks against Russian refineries. Some 90 countries have implemented some form of support to cushion the blow on consumers.
Public finances worldwide were already in a relatively parlous state, but there is little appetite for the political consequences of withdrawing fuel subsidies to restore fiscal rectitude.
To make matters worse, a second inflationary shock could be in the works, The Wall Street Journal’s chief economics commentator warned, which means interest rates could remain high for longer than expected.
