Geopolitical Risk: The Latest Boardroom Agenda

Rise of a Multipolar World

Recently, oil markets reacted sharply to the U.S.-Israel air campaign against Iran   — “Operation Epic Fury” — and to Iran’s moves and threats affecting shipping through the Strait of Hormuz, a key route for global oil and liquified natural gas (LNG) flows.¹ Brent crude traded above $100 per barrel during the disruption and, according to Reuters’s reporting, reached intraday highs around $119 as the effective closure of the strait intensified supply fears.² This was not an isolated shock, but one flashpoint among many. From Russia’s invasion of Ukraine to the U.S.-China trade and technology standoff, geopolitical risk has intensified — fragmenting parts of the world economy and creating complex new perils for businesses. Companies are now grappling with this new reality. In a recent World Economic Forum survey of global leaders, 23% identified state-based conflict as the most likely driver of a major global crisis — ranking it above inflation and climate