Indonesia can absorb the economic impact of rising global oil prices driven by tensions in the Middle East for up to 10 months without cutting fuel subsidies, a senior minister has said.

A United Arab Emirates (UAE) minister on Sunday warned of mounting risks to global supply chains as disruptions intensify in the Strait of Hormuz, one of the world's most critical energy corridors.

Rising oil prices are traditionally seen as an unequivocal benefit for hydrocarbon-exporting countries. For Azerbaijan, whose economy largely depends on the energy sector, this factor indeed plays a key role. However, in modern conditions, the impact of oil prices on the country’s economy is far more complex and multifaceted than it may appear at first glance.

Global energy markets are currently experiencing heightened volatility due to a combination of geopolitical tensions, supply constraints, and shifting demand patterns. The price of Brent crude oil, which serves as a key international benchmark, has been particularly sensitive to developments in major producing regions.

Fatih Birol, head of the International Energy Agency (IEA), said he is prepared to release additional oil reserves as energy prices soar worldwide.

China’s position as the largest buyer of Iranian oil is coming under renewed pressure following a temporary US sanctions waiver that could reshape global supply dynamics.

The White House has temporarily lifted some sanctions on Iranian oil purchases in an effort to stabilise global energy prices amid ongoing conflict.

Global oil prices surged past $100 per barrel again overnight as the ongoing conflict involving the United States and Israel with Iran continues to disrupt energy markets and fuel supply routes.

For decades global discussions focused on population growth urban expansion and youth driven markets. That narrative is now reversing. Across large parts of the world populations are aging birth rates are falling and entire societies are entering a phase of demographic contraction. This shift is not sudden but its consequences are accelerating. What once looked like a distant statistical trend is becoming a defining force shaping economies political systems national security and global power balances.

Editor’s note: Abulfaz Babazadeh is a scientist, a Japanese studies scholar and a political observer, as well as a member of the Union of Journalists of Azerbaijan. The views expressed in this article are those of the author and do not necessarily reflect the position of News.Az.