Global oil prices are approaching a critical threshold that could lead to inflation, shortages, and recession.

The cost of a barrel of crude has fluctuated significantly since Iran responded to US and Israeli aggression by closing the Strait of Hormuz.

Despite appearances, the market is on the cusp of a 'non-linear adjustment', or chaos, due to several factors, including a record release of strategic oil reserves and rerouting of Gulf production.

However, the International Energy Agency warns that oil stocks are being depleted at an unprecedented rate, and several analysts predict that prices could surge to crisis levels, causing 'demand destruction' and economic damage.