The oil shock and the new political economy of development cooperation
Sumner, Andy / Stephan Klingebiel (2026)
Policy Brief 18/2026
A historic oil shock triggered by the 2026 US–Israel–Iran war and the closure of the Strait of Hormuz is colliding with a weakened aid system. This brief examines how rising energy costs, fiscal strain and geopolitical shifts are reshaping global development cooperation.