The Iran War Has One Clear Regional Winner

With the world reverberating to the risks of an oil-price shock, Latin America is actually poised to strengthen its geopolitical position. If it wants to capitalize on this moment, it needs to sharpen its collective bargaining power, set aside its ideological divisions and bolster domestic policy, particularly on crime and insecurity.

According to a recent report by Goldman Sachs Group Inc., Latin America is one of the few parts of the world where persistently higher oil prices could actually translate into stronger economic growth. The impact, of course, won’t be uniform: Large net exporters such as Brazil, Guyana or Colombia stand to benefit far more than major importers of fuel and natural gas like Mexico or Chile. Food and gasoline price pressures could still trigger social unrest and force governments to expand subsidies amid fiscal constraints. And to be sure, a world of heightened financial volatility is rarely kind to emerging markets.