IDEAS home Printed from https://ideas.repec.org/a/bhx/oijscl/v9y2025i4p67-82id2725.html

The Impact of Geopolitical Factors on Global Oil Prices and Supply Chain Sustainability

Author

Listed:
  • Kadugala J.M Aniceto

  • Florence Masai

Abstract

Purpose: This paper assessed the effects of political stability and trade sanctions on SCSC; with references to the Russo-Ukraine war ordeal, Iranian SCSC under sanctions, and SCSC under the oil embargo. Trade restrictions, environmental policies and other regulatory factors have an impact on energy trade by increasing the volatility of the global energy market and the inefficiency of supply chains. Methodology: In this study, secondary source of data collection was employed by extracting information from government documents, journals specializing in oil industry and academic database to evaluate the economic and policy effects of changes in the oil market. Findings: It is found out that supply influences oil price fluctuations resulting from geopolitical crisis such as wars, trade policies and regulation initiatives, economic sanctions, piracy and terrorism, and political instability. Nonetheless, restrictions like embargoes significantly impact oil trade, hence adversely affecting supply chain operations and associated costs. Furthermore, environmental policies are altering the nature of supply chain resilience through carbon regulations, fluctuations in energy availability, and the imposition of emission capacity limitations that are disadvantageous for oil-dependent nations. Unique Contribution to Theory, Practice, and Policy: It was suggested that both the governments and the economies which rely heavily on oil put more relaxed measures in place in an attempt to counter the challenges of the oil supply chain fundamental to the environmental as well as the trade policies. That is why future research should investigate the problems of real-time monitoring of geopolitical risks and the impact of digitalization of the oil market on a more distant outlook.

Suggested Citation

  • Kadugala J.M Aniceto & Florence Masai, 2025. "The Impact of Geopolitical Factors on Global Oil Prices and Supply Chain Sustainability," International Journal of Supply Chain and Logistics, CARI Journals Limited, vol. 9(4), pages 67-82.
  • Handle: RePEc:bhx:oijscl:v:9:y:2025:i:4:p:67-82:id:2725
    as

    Download full text from publisher

    File URL: https://carijournals.org/journals/IJSCL/article/view/2725
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lee, Chien-Chiang & Olasehinde-Williams, Godwin & Özkan, Oktay, 2023. "Geopolitical oil price uncertainty transmission into core inflation: Evidence from two of the biggest global players," Energy Economics, Elsevier, vol. 126(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Omid Asadollah & Linda Schwartz Carmy & Md. Rezwanul Hoque & Hakan Yilmazkuday, 2024. "Geopolitical risk, supply chains, and global inflation," The World Economy, Wiley Blackwell, vol. 47(8), pages 3450-3486, August.
    2. Chen Xiang Jie & Oktay Özkan & Muhammad Saeed Meo & Muhammad Ramzan, 2026. "SDG achievement through international clean energy financing and access to clean fuel and technology," Energy & Environment, , vol. 37(2), pages 540-559, March.
    3. Giovanni Carnazza & Paolo Liberati & Agnese Sacchi, 2024. "Political instability and international trade in the European Union: A network-based approach," Discussion Papers 2024/319, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    4. Liu, Zongming & Shi, Wenhui, 2026. "Global oil supply risk and macro-financial downside risk: Can monetary policy mitigate the risk transmission?," Economic Modelling, Elsevier, vol. 154(C).
    5. Tomiwa Sunday Adebayo & Oktay Özkan & Zahoor Ahmed & Victoria Olushola Olanrewaju, 2026. "How do high-tech industry, energy efficiency (gas and oil), and social globalization affect load capacity factor in Saudi Arabia? A Time-varying quantile regression," Energy & Environment, , vol. 37(2), pages 730-757, March.
    6. Lee, Chien-Chiang & Yahya, Farzan, 2024. "Mitigating energy instability: The influence of trilemma choices, financial development, and technology advancements," Energy Economics, Elsevier, vol. 133(C).
    7. Altug Aydemir & Mert Gokcu, 2025. "Does Deep Learning Improve Forecast Accuracy of Crude Oil Prices? Evidence from a Neural Network Approach," CBT Research Notes in Economics 2511, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    8. Dutta, Anupam & Uddin, Gazi Salah & Sheng, Lin Wen & Park, Donghyun & Zhu, Xuening, 2024. "Volatility dynamics of agricultural futures markets under uncertainties," Energy Economics, Elsevier, vol. 136(C).
    9. Usman, Ojonugwa & Iorember, Paul Terhemba & Ozkan, Oktay & Alola, Andrew Adewale, 2024. "Dampening energy security-related uncertainties in the United States: The role of green energy-technology investment and operation of transnational corporations," Energy, Elsevier, vol. 289(C).
    10. Yang, Tianle & Dong, Qingyuan & Du, Min & Du, Qunyang, 2023. "Geopolitical risks, oil price shocks and inflation: Evidence from a TVP–SV–VAR approach," Energy Economics, Elsevier, vol. 127(PB).
    11. Yilmazkuday, Hakan, 2024. "Geopolitical risks and energy uncertainty: Implications for global and domestic energy prices," Energy Economics, Elsevier, vol. 140(C).
    12. Linlin Niu & Haoran Bai & Zhiwu Hong, 2026. "Geopolitical Risks, Inflation Pressure, and the U.S. Treasury Yield Curve," Working Papers 2025-09-25, Wang Yanan Institute for Studies in Economics (WISE), Xiamen University.
    13. Oktay Ozkan & Asima Saleem & Nasir Khan & Andrew Adewale Alola, 2025. "Global impact of geopolitical oil price uncertainty and associated commodity prices on clean energy stocks," Energy & Environment, , vol. 36(7), pages 3501-3526, November.
    14. Hui Hu & Yuqi Zhu & Chien-Chiang Lee & Alastair M. Morrison, 2023. "The effects of foreign product demand-labor transfer nexus on human capital investment in China," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 10(1), pages 1-13, December.
    15. Zhang, Xiuqi & Meng, Xiangyu & Su, Chi Wei, 2024. "The security of energy import: Do economic policy uncertainty and geopolitical risk really matter?," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 377-388.
    16. Lee, Chien-Chiang & Olasehinde-Williams, Godwin & Özkan, Oktay, 2024. "Is geopolitical oil price uncertainty forcing the world to use energy more efficiently? Evidence from advanced statistical methods," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 908-919.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bhx:oijscl:v:9:y:2025:i:4:p:67-82:id:2725. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chief Editor (email available below). General contact details of provider: https://carijournals.org/journals/IJSCL/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.