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This week on Money & Investing, Steve Jermy and I discuss how geopolitical conflict affects energy supply, economic growth and investment conditions. We examine the Russia–Ukraine war, tensions involving Iran and the financial consequences of prolonged disruption.

1. Understand the Strategy Behind Conflict

Steve shares his perspective on NATO, Russia and the decisions shaping the war in Ukraine. We discuss why understanding each side’s objectives matters when assessing the potential for escalation or a negotiated settlement.

2. Consider the Economic Cost of War

Military spending places demands on government budgets, alongside healthcare, education and infrastructure. We examine how prolonged conflict and borrowing costs can limit governments’ financial flexibility.

3. Recognise Energy’s Role in Everyday Costs

Fuel and electricity support farming, manufacturing, construction and transport. We explain how higher energy costs flow through business expenses and household budgets, putting pressure on profits and consumer spending.

4. Assess Changes in Global Trade

We discuss Steve’s concerns about the consequences of sanctions for European energy costs and export markets. Changes in suppliers and customers can reshape trade relationships, with effects that may continue after fighting ends.

5. Watch Energy Supply and Shipping Disruption

The Strait of Hormuz is a central topic in our discussion of Iran and energy security. We examine how cargo already at sea, stored supplies and alternative routes can delay the economic impact of disruption.

6. Understand Demand Destruction

When energy becomes unaffordable, businesses may reduce production and households may cut spending. We explain why falling demand can signal economic weakness, and why lower oil prices do not automatically indicate improving conditions.

7. Allow Time for Recovery

Restoring energy deliveries requires ships, insurance and functioning supply networks. We discuss why reopening a shipping route may not produce an immediate recovery, and how diplomatic progress could support greater economic stability.

The Watchlist — short video interviews with ASX leaders. Watch now.

Disclaimer: Wealth Magnet Pty Ltd (ABN 52 618 868 830) trading as Australian Investment Education is a Corporate Authorised Representative (CAR no. 1255231) of Grange Financial Services Pty Ltd (AFSL No. 488609).

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.

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