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Middle East Conflict Clouds the Economic Outlook
The military conflict in Iran and the Middle East is curtailing the global flow of oil and natural gas. This adds notable pressure to energy prices and the near-term inflation outlook, while also raising questions about countries’ reliance on energy imports and their economic resilience. The longer the Iran conflict drags on, especially if we see more pronounced damage to energy infrastructure alongside suspended production and constrained shipments through the Strait of Hormuz, the global economy could be at risk of a more prolonged energy supply shock. So far, the market reaction appears focused on upside ... (full story)
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