The energy crisis isn’t recessionary yet, but there’s a scenario where oil prices could bring the US economy to a ‘standstill,’ Oxford Economics says

Oxford Economics warns that sustained high oil prices could bring the US economy to a standstill, though the current energy crisis hasn't triggered a recession yet. Higher-for-longer oil prices would create economic spillover effects that are difficult to control.

• →The current energy crisis has not yet caused recessionary conditions in the US economy.
• →Oxford Economics identifies a scenario where sustained high oil prices could halt US economic activity.
• →Higher-for-longer oil price scenarios would create spillover effects that are challenging to manage.
• →Energy price impacts extend beyond direct costs to broader economic disruptions.
• →Economic policymakers face limited tools to control energy-driven economic spillovers.