The global energy landscape is currently undergoing a seismic shift that transcends simple market fluctuations, signaling a period of profound economic recalibration for resource-rich nations like Azerbaijan. While the early months of 2026 began with a global trend toward monetary easing, the sudden eruption of large-scale conflict in the Middle East has effectively shattered those expectations. The surge in oil prices beyond the 180-dollar mark is not merely a windfall for exporters; it is a complex double-edged sword that brings with it the looming shadow of systemic inflation. For the Central Bank of Azerbaijan, the recent decision to hold interest rates steady at 6.5 percent is the first definitive signal that the era of cheap credit is over, replaced by a defensive crouch in the face of a gathering storm.

The fundamental driver of this shift is the physical destruction of energy infrastructure and the resulting paralysis of global trade arteries. The strategic importance of the Strait of Hormuz cannot be overstated, as it serves as the jugular vein of the global oil trade. With its closure and the targeted strikes on refining capacities across both Iran and the Gulf states, the world is facing a........

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