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Markets await Ukraine compromise, avoid minefields

Gold and oil are back to pre-war levels, suggesting that ‘nuclear’ sanctions didn’t detonate

by David P. Goldman March 16, 2022March 17, 2022

Traders and financial professionals work ahead of the closing bell on the floor of the New York Stock Exchange in this undated file photo. Photo: AFP / Drew Angerer

The prices of risk hedges against “nuclear” sanctions and their knock-on effects shrank back to pre-war levels as Russia continues to sell oil and gas, and major trading nations continue to use the American dollar as the main instrument of exchanges. Fears of a dislocated energy market and a rush out of dollars following the seizure of half of Russia’s $630 billion in foreign exchange reserves haven’t materialized, as both the United States and Russia showed a certain amount of restraint.