Energy shock continues to tighten liquidity and reshape trade finance risk

The ongoing energy and commodity disruption linked to Middle East tensions continues to reshape global trade finance conditions.

Rising fuel costs and supply chain disruption are increasing pressure on working capital, particularly for import-dependent economies and energy-intensive sectors.

The volatility is feeding through into tighter liquidity, higher financing costs and increased counterparty risk across global trade flows.

Financial institutions are responding by tightening credit conditions and reassessing exposure to high-risk sectors and regions.

The situation underscores how energy markets are now a central driver of trade finance risk, with knock-on effects across supply chains and funding availability.