In March 2022, the Russian rouble depreciated significantly against the US dollar after Western countries imposed tough sanctions on Russia over its invasion of Ukraine wreaking havoc in international financial markets, while surging oil prices exacerbated concerns of stagflation in the global economy. Oil prices spiked to trade over $100 a barrel, while Brent crude futures touched their highest since June 2014, further denting global risk sentiment.

Question 1: Give a critical assessment of the impact of oil supply shocks on the economy.