04/25/2026
Paying more at the tank? ✔️
Recent market volatility? ✔️
Is this combination worrisome? Thankfully, not for long! Stocks have historically recovered rather quickly after oil shocks
Over the past 7 geopolitical events since 1990 that caused oil spikes, markets were up on average 1.4% two months after, 12% one year later and up 32.3% on average two years after
After the initial uncertainty and short term choppiness markets often absorb oil shocks much faster than headlines suggest. This is largely because these geopolitical shocks haven't led to prolonged physical supply outages (it also helps that the US is also now the largest producer)
As of today, the US market (S&P 500) is up 4.1% since the current event began on February 28th
SOURCE: https://www.capitalgroup.com
