Commodity indices, which track the prices of a basket of commodities, are essential tools for investors to gain exposure to raw materials such as oil, metals, and agricultural products. However, the stability and predictability of these indices can be significantly influenced by geopolitical events, which often have the power to cause volatility in commodity markets. Geopolitical risks range from wars and diplomatic tensions to trade agreements and sanctions, each with the potential to alter the supply-demand dynamics and, consequently, the pricing of commodities.
The Impact of Conflict on Energy and...