How Geopolitical Tensions Influence Commodity Prices

How Geopolitical Tensions Influence Commodity Prices

Geopolitical tensions have a significant impact on commodity prices, as they can affect supply and demand, leading to fluctuations in prices. In this article, we will explore how geopolitical tensions influence commodity prices and the factors that contribute to these fluctuations.

What Are Commodity Prices?

Commodity prices refer to the prices of raw materials and agricultural products that are traded on global markets. These prices are influenced by a variety of factors, including supply and demand, geopolitical tensions, and economic conditions.

How Do Geopolitical Tensions Influence Commodity Prices?

Geopolitical tensions can influence commodity prices in several ways. For example, conflicts or instability in a country that produces a particular commodity can lead to disruptions in supply, which can drive up prices. Similarly, political instability in a country that consumes a particular commodity can lead to reduced demand, which can also lead to price increases. Another way that geopolitical tensions can influence commodity prices is through currency fluctuations. When a country's currency weakens, it can make its exports more expensive, which can lead to a decrease in demand for those exports. This can also lead to an increase in demand for commodities that are used in the production of those exports, which can drive up prices.

Examples of How Geopolitical Tensions Influence Commodity Prices

Here are a few examples of how geopolitical tensions have influenced commodity prices in the past: * In 2014, tensions between Russia and Ukraine led to a significant decrease in demand for Ukrainian grain, which led to a sharp increase in prices for grain globally. * In 2018, tensions between the United States and China led to a trade war that resulted in tariffs being imposed on a variety of products, including agricultural products. This led to a decrease in demand for American agricultural products, which led to a sharp increase in prices for those products. * In 2020, the COVID-19 pandemic led to a significant decrease in demand for many commodities, including oil and metals, which led to a sharp decrease in prices for those commodities.

Conclusion

Geopolitical tensions have a significant impact on commodity prices, as they can affect supply and demand, leading to fluctuations in prices. To mitigate the impact of geopolitical tensions on commodity prices, it is important to understand the factors that contribute to these fluctuations and to develop strategies to manage them. By staying informed and proactive, businesses and investors can better navigate the complex world of commodity prices and take advantage of opportunities to profit from these fluctuations.

FAQ's

How do supply and demand dynamics affect commodity prices?+

What are the factors that influence commodity prices?+

What are the main factors that drive commodity prices?+

How do geopolitical events impact commodity prices?+

What are the risks of investing in commodities?+

What is the difference between spot and futures prices for commodities?+

What are the main factors that drive oil prices?+

What is the difference between commodity trading and commodity investing?+

How do currency exchange rates affect global investments?+

How do weather conditions impact agricultural commodities?+

Want financial news and market updates?

FREE Weekly Market Updates delivered to your inbox.

Market Watch
$288.19
JPM
1.78% ($5.03)
JPMorgan Chase & Co.
10:45 AM
$555.45
QQQ
-0.14% (-$0.80)
Invesco QQQ Trust
8:00 AM
$727.24
META
-0.76% (-$5.54)
Meta, Inc.
8:25 AM
$23.94
GFI
-0.33% (-$0.08)
Gold Fields
10:30 AM
$74.62
NKE
1.44% ($1.06)
Nike, Inc.
10:20 AM
$59.78
NEM
1.75% ($1.03)
Newmont Corporation
10:20 AM
$373.30
HD
0.61% ($2.26)
The Home Depot, Inc.
10:40 AM
$46.53
AU
0.00% (-$0.00)
AngloGold Ashanti
10:45 AM
$89.81
EFA
-0.07% (-$0.06)
iShares MSCI EAFE ETF
10:35 AM
$299.51
UNH
-1.12% (-$3.40)
UnitedHealth Group Incorporated
8:35 AM
$309.87
TSLA
4.73% ($13.99)
Tesla, Inc.
8:05 AM
$325.24
AXP
2.49% ($7.89)
American Express Company
10:55 AM
$9.11
CDE
1.56% ($0.14)
Coeur Mining
10:40 AM
$144.16
AMD
4.15% ($5.75)
Advanced Micro Devices, Inc.
8:00 AM
$121.56
DIS
0.79% ($0.95)
The Walt Disney Company
11:00 AM
$23.82
INTC
1.62% ($0.38)
Intel Corporation
8:00 AM
$717180.00
BRK-A
-0.33% (-$2398.06)
Berkshire Hathaway Inc.
8:25 AM
$3.47
BTG
-2.80% (-$0.10)
B2Gold
10:35 AM
$177.62
GOOGL
0.57% ($1.00)
Alphabet Inc.
8:55 AM
$355.88
V
-0.53% (-$1.88)
Visa Inc.
9:25 AM
$709.12
GS
1.80% ($12.56)
The Goldman Sachs Group, Inc.
10:40 AM
$154.17
CVX
0.75% ($1.15)
Chevron Corporation
11:00 AM
$62.67
IAU
0.24% ($0.15)
iShares Gold Trust
10:50 AM
$157.32
MMM
0.86% ($1.34)
3M Company
11:00 AM
$10.64
MUX
-1.02% (-$0.11)
McEwen Mining
10:00 AM
$11.55
SILV
-0.86% (-$0.10)
SilverCrest Metals
12:00 PM
$114.93
XOM
0.99% ($1.13)
Exxon Mobil Corporation
10:30 AM
$501.48
MSFT
-0.40% (-$2.03)
Microsoft Corporation
8:00 AM
$26.11
AGI
-1.29% (-$0.34)
Alamos Gold
10:40 AM
$33.75
SLV
2.27% ($0.75)
iShares Silver Trust
10:05 AM
$12.42
SSRM
0.32% ($0.04)
SSR Mining
8:00 AM
$15.34
KGC
0.13% ($0.02)
Kinross Gold
11:00 AM
$235.00
ORCL
-0.13% (-$0.31)
Oracle Corporation
9:50 AM
$158.95
FNV
-0.08% (-$0.13)
Franco-Nevada
10:55 AM
$69.77
KO
0.42% ($0.29)
The Coca-Cola Company
10:00 AM
$212.41
AAPL
0.60% ($1.27)
Apple Inc.
8:00 AM
$625.82
SPY
0.28% ($1.76)
SPDR S&P 500 ETF Trust
10:05 AM
$222.26
AMZN
-0.13% (-$0.28)
Amazon.com, Inc.
8:15 AM
$308.32
VTI
0.27% ($0.82)
Vanguard Total Stock Market ETF
10:40 AM
$94.86
WMT
-2.01% (-$1.95)
Walmart Inc.
9:40 AM
$27.62
T
-0.73% (-$0.20)
AT&T Inc.
11:00 AM
$19.94
EGO
0.25% ($0.05)
Eldorado Gold
8:30 AM
$89.89
WPM
1.18% ($1.05)
Wheaton Precious Metals
9:40 AM
$195.00
ABBV
2.30% ($4.38)
AbbVie Inc.
10:55 AM
$29.34
PAAS
1.77% ($0.51)
Pan American Silver
10:05 AM
$158.49
PG
0.62% ($0.97)
The Procter & Gamble Company
10:45 AM
$298.39
MCD
1.83% ($5.37)
McDonald's Corporation
8:30 AM
$84.02
MRK
0.37% ($0.31)
Merck & Co., Inc.
11:00 AM
$18.86
GOLD
-2.78% (-$0.54)
Barrick Gold Corp.
12:00 AM
$5.89
HL
2.08% ($0.12)
Hecla Mining
10:50 AM
$49.66
VWO
0.10% ($0.05)
Vanguard FTSE Emerging Markets ETF
8:20 AM
$25.78
PFE
0.86% ($0.22)
Pfizer Inc.
10:50 AM
$42.03
VZ
0.23% ($0.10)
Verizon Communications Inc.
9:55 AM
$226.09
BA
-0.23% (-$0.51)
Boeing Company
11:00 AM
$159.79
RGLD
-0.37% (-$0.60)
Royal Gold Inc.
8:00 AM
$68.76
CSCO
-0.74% (-$0.51)
Cisco Systems, Inc.
8:00 AM
$224.80
IWM
0.51% ($1.15)
iShares Russell 2000 ETF
8:00 AM
$75.70
PYPL
1.16% ($0.87)
PayPal Holdings, Inc.
8:00 AM
$9.84
SAND
-0.30% (-$0.03)
Sandstorm Gold
9:20 AM
$51.90
GDX
0.78% ($0.40)
VanEck Gold Miners
11:00 AM
$306.20
GLD
0.22% ($0.68)
SPDR Gold Trust
11:00 AM
$8.64
AG
2.49% ($0.21)
First Majestic Silver
10:40 AM
$263.97
CRM
-2.57% (-$6.95)
Salesforce.com, inc.
10:30 AM
$236.77
HON
-0.82% (-$1.95)
Honeywell International Inc.
8:00 AM
$5.44
EXK
2.84% ($0.15)
Endeavour Silver
11:00 AM
$118.15
AEM
0.39% ($0.46)
Agnico Eagle Mines
11:00 AM
$157.69
JNJ
0.90% ($1.41)
Johnson & Johnson
10:15 AM
$563.52
MA
-0.28% (-$1.59)
Mastercard Incorporated
10:30 AM
$67.52
GDXJ
0.45% ($0.30)
VanEck Junior Gold Miners
11:00 AM
$164.10
NVDA
0.75% ($1.22)
NVIDIA Corporation
8:00 AM
$1250.59
NFLX
-2.93% (-$37.69)
Netflix, Inc.
8:00 AM
$575.29
VOO
0.29% ($1.68)
Vanguard S&P 500 ETF
8:50 AM
$48.42
EEM
0.27% ($0.13)
iShares MSCI Emerging Markets ETF
9:55 AM
$57.35
VEA
0.07% ($0.04)
Vanguard FTSE Developed Markets ETF
10:50 AM
$52.71
XLF
0.59% ($0.31)
Financial Select Sector SPDR Fund
8:55 AM
$579.77
VFIAX
0.29% ($1.67)
Vanguard 500 Index Fund
8:00 AM
$218.82
FXAIX
0.29% ($0.63)
Fidelity 500 Index Fund
8:00 AM
$150.10
VTSAX
0.27% ($0.41)
Vanguard Total Stock Market Index Fund
8:00 AM
$274.10
DODGX
0.35% ($0.95)
Dodge & Cox Stock Fund
8:00 AM
$83.14
AGTHX
0.20% ($0.17)
American Funds Growth Fund of America
8:00 AM
$201.96
TRBCX
-0.12% (-$0.25)
T. Rowe Price Blue Chip Growth Fund
8:00 AM
$20.70
BECO
0.12% ($0.02)
BlackRock Future Climate and Sustainable Economy
8:30 AM
$65.83
GLDM
0.27% ($0.18)
SPDR Gold MiniShares
11:00 AM
$61.74
BITB
1.45% ($0.88)
Bitwise Bitcoin
11:00 AM
$89.30
GBTC
1.39% ($1.22)
Grayscale Bitcoin
11:00 AM
$89.75
VNQ
0.63% ($0.56)
Vanguard Real Estate
10:20 AM
$371.43
ADBE
-0.52% (-$1.95)
Adobe Inc.
8:00 AM
$111.85
ALTR
0.00% (-$0.00)
Altair Engineering Inc.
8:00 AM
$198.03
AMAT
1.35% ($2.64)
Applied Materials, Inc.
8:00 AM
$300.37
AMGN
1.30% ($3.85)
Amgen Inc.
8:00 AM
$135.33
BIIB
1.74% ($2.31)
Biogen Inc.
8:00 AM
$30.76
CECO
-0.52% (-$0.16)
CECO Environmental Corp.
8:00 AM
$221.26
CHKP
-4.31% (-$9.97)
Check Point Software Technologies Ltd.
8:00 AM
$100.84
CHRW
1.74% ($1.72)
C.H. Robinson Worldwide, Inc.
8:00 AM
$35.42
CMCSA
-0.56% (-$0.20)
Comcast Corporation
8:00 AM
$970.17
COST
-1.21% (-$11.92)
Costco Wholesale Corporation
8:00 AM
$216.56
CTAS
-0.04% (-$0.08)
Cintas Corporation
8:00 AM
$127.91
DELL
1.01% ($1.28)
Dell Technologies Inc. Class C
11:00 AM
$108.37
DLTR
3.46% ($3.62)
Dollar Tree, Inc.
8:00 AM
$77.22
EBAY
1.18% ($0.90)
eBay Inc.
8:00 AM
$119.25
EXPD
1.69% ($1.98)
Expeditors International of Washington, Inc.
10:45 AM
$43.56
FAST
0.37% ($0.16)
Fastenal Company
8:00 AM
$51.93
FLEX
0.48% ($0.25)
Flex Ltd.
8:00 AM
$114.54
GILD
1.15% ($1.30)
Gilead Sciences, Inc.
8:00 AM
$23.28
GNTX
1.04% ($0.24)
Gentex Corporation
8:00 AM
$217.80
GRMN
0.32% ($0.69)
Garmin Ltd.
8:20 AM
$74.53
HSIC
0.50% ($0.37)
Henry Schein, Inc.
8:00 AM
$747.90
INTU
-2.69% (-$20.65)
Intuit Inc.
8:00 AM
$39.95
JNPR
0.05% ($0.02)
Juniper Networks, Inc.
12:00 AM
$928.62
KLAC
0.59% ($5.44)
KLA Corporation
8:00 AM
$125.31
LAMR
0.67% ($0.83)
Lamar Advertising Company
10:35 AM
$101.06
LRCX
1.25% ($1.25)
Lam Research Corporation
8:00 AM
$75.08
MCHP
0.54% ($0.40)
Microchip Technology Incorporated
8:00 AM
$27.36
MEDI
0.08% ($0.02)
Harbor
8:00 AM
$73.36
MRVL
1.52% ($1.10)
Marvell Technology, Inc.
8:00 AM
$106.42
NTAP
-0.23% (-$0.25)
NetApp, Inc.
8:00 AM
$145.31
PAYX
-0.43% (-$0.63)
Paychex, Inc.
8:00 AM
$99.22
PCAR
0.56% ($0.55)
PACCAR Inc.
8:00 AM
$31.33
PDCO
0.00% (-$0.00)
Patterson Companies, Inc.
12:00 AM
$6.56
PTEN
0.46% ($0.03)
Patterson-UTI Energy, Inc.
8:00 AM
$159.09
QCOM
-0.16% (-$0.26)
QUALCOMM Incorporated
8:00 AM
$130.86
ROST
-0.27% (-$0.35)
Ross Stores, Inc.
8:00 AM
$58.29
RYAAY
0.74% ($0.43)
Ryanair Holdings plc
8:00 AM
$64.89
SANM
-0.22% (-$0.15)
Sanmina Corporation
6:26 PM
$75.90
SBUX
0.30% ($0.22)
Starbucks Corporation
6:26 PM
$554.84
SNPS
0.90% ($4.96)
Synopsys, Inc.
6:26 PM
$293.64
SPOT
-1.68% (-$5.02)
Spotify Technology S.A. Ordinary
6:26 PM
$16.33
TEVA
2.09% ($0.33)
Teva Pharmaceutical Industries Limited American Depositary
6:26 PM
$171.31
VRSN
0.90% ($1.52)
VeriSign, Inc.
6:26 PM
$231.27
VRTS
-1.39% (-$3.27)
Virtus Investment Partners, Inc.
6:26 PM
$28.00
XRAY
-0.71% (-$0.20)
DENTSPLY SIRONA Inc.
6:26 PM
$
BRK.B
% (-$)
Berkshire Hathaway Inc. New
$38.42
BAC
0.35% ($0.14)
Bank of America Corporation
6:26 PM
$136.08
PEP
1.19% ($1.60)
PepsiCo, Inc.
8:00 AM
$133.60
ABT
0.29% ($0.38)
Abbott Laboratories
11:00 AM
$430.73
TMO
2.58% ($10.85)
Thermo Fisher Scientific Inc
10:20 AM
$275.40
AVGO
-0.90% (-$2.50)
Broadcom Inc.
8:00 AM
$288.36
ACN
-2.55% (-$7.56)
Accenture plc
11:00 AM
$790.65
LLY
0.47% ($3.73)
Eli Lilly and Company
10:15 AM
$205.51
DHR
2.26% ($4.55)
Danaher Corporation
10:55 AM
$89.40
MDT
0.45% ($0.40)
Medtronic plc. Ordinary
10:50 AM
$74.64
NEE
1.34% ($0.99)
NextEra Energy, Inc.
10:20 AM
$219.66
TXN
1.51% ($3.27)
Texas Instruments Incorporated
8:00 AM
$470.34
LIN
-0.20% (-$0.93)
Linde plc
8:00 AM
$48.52
BMY
1.80% ($0.86)
Bristol-Myers Squibb Company
11:00 AM
$82.36
WFC
0.70% ($0.57)
Wells Fargo & Company
10:40 AM
$180.99
PM
1.69% ($3.01)
Philip Morris International Inc
11:00 AM
$237.00
UNP
0.22% ($0.51)
Union Pacific Corporation
10:20 AM
$287.43
IBM
-0.93% (-$2.71)
International Business Machines Corporation
11:00 AM
$143.09
MS
1.09% ($1.54)
Morgan Stanley
10:40 AM
$252.57
GE
0.89% ($2.24)
GE Aerospace
10:30 AM
$408.33
CAT
1.53% ($6.15)
Caterpillar, Inc.
10:55 AM
$1104.05
BLK
1.41% ($15.30)
BlackRock, Inc.
10:55 AM
$58.55
MO
1.39% ($0.80)
Altria Group, Inc.
10:45 AM
$102.92
UPS
0.75% ($0.77)
United Parcel Service, Inc.
10:45 AM
$519.20
DE
1.94% ($9.87)
Deere & Company
8:25 AM
$87.08
C
1.50% ($1.29)
Citigroup, Inc.
10:55 AM
$464.31
LMT
0.27% ($1.25)
Lockheed Martin Corporation
11:00 AM
$146.40
RTX
0.15% ($0.22)
RTX Corporation
10:45 AM
$80.22
FIS
0.25% ($0.20)
Fidelity National Information Services, Inc.
8:30 AM
$526.05
ISRG
-0.39% (-$2.08)
Intuitive Surgical, Inc.
8:00 AM
$394.77
SYK
0.69% ($2.72)
Stryker Corporation
10:55 AM
$93.04
SCHW
0.78% ($0.72)
Charles Schwab Corporation (The)
11:00 AM
$308.78
CI
-0.32% (-$1.00)
The Cigna Group
10:25 AM
$479.53
VRTX
0.12% ($0.57)
Vertex Pharmaceuticals Incorporated
8:00 AM
$177.50
BDX
1.14% ($2.00)
Becton, Dickinson and Company
9:40 AM
$529.83
SPGI
0.21% ($1.10)
S&P Global Inc.
10:20 AM
$123.11
MU
0.71% ($0.87)
Micron Technology, Inc.
8:50 AM
$197.95
PNC
0.92% ($1.81)
PNC Financial Services Group, Inc.
11:00 AM
$11.91
F
0.68% ($0.08)
Ford Motor Company
9:00 AM
$104.74
TGT
2.26% ($2.31)
Target Corporation
10:35 AM
$305.82
ADP
-0.84% (-$2.59)
Automatic Data Processing, Inc.
8:00 AM
$92.10
EL
6.34% ($5.49)
Estee Lauder Companies, Inc.
11:00 AM
$227.91
LOW
1.04% ($2.34)
Lowe's Companies, Inc.
10:45 AM
$95.37
COP
0.89% ($0.84)
ConocoPhillips
10:55 AM
$280.54
CB
0.19% ($0.54)
Chubb Limited
11:00 AM
$67.15
MDLZ
0.45% ($0.30)
Mondelez International, Inc.
8:00 AM
$121.73
EOG
-0.13% (-$0.16)
EOG Resources, Inc.
11:00 AM
$124.16
TJX
-1.03% (-$1.29)
TJX Companies, Inc.
10:05 AM
$5718.51
BKNG
0.89% ($50.47)
Booking Holdings Inc.
8:00 AM
$82.46
AIG
-0.73% (-$0.61)
American International Group, Inc.
10:10 AM
$53.15
GM
1.10% ($0.58)
General Motors Company
10:45 AM
$56.78
DAL
11.99% ($6.08)
Delta Air Lines, Inc.
9:25 AM
$95.15
ZBH
-0.05% (-$0.05)
Zimmer Biomet Holdings, Inc.
9:40 AM
$90.62
CL
-1.05% (-$0.96)
Colgate-Palmolive Company
10:50 AM
$505.72
MCO
0.70% ($3.50)
Moody's Corporation
8:50 AM
$78.37
MET
0.17% ($0.13)
MetLife, Inc.
10:10 AM
$25.73
HPQ
0.43% ($0.11)
HP Inc.
10:55 AM
$42.66
FMC
-2.22% (-$0.97)
FMC Corporation
9:15 AM
$131.95
KMB
0.35% ($0.46)
Kimberly-Clark Corporation
8:00 AM
$54.89
ADM
1.65% ($0.89)
Archer-Daniels-Midland Company
9:50 AM
$112.26
DG
-0.08% (-$0.09)
Dollar General Corporation
9:25 AM
$232.18
HUM
-1.91% (-$4.52)
Humana Inc.
10:30 AM
$142.50
PLTR
-0.44% (-$0.63)
Palantir Technologies Inc.
8:00 AM