Gulf Conflict Reignites Stagflation Fears as Energy Prices Soar

Renewed tensions in the Gulf have reignited fears of stagflation, raising concerns that the global economy could face a prolonged period of weak growth alongside persistent inflation.

The conflict has intensified, sending energy prices sharply higher and rattling financial markets. Oil prices have climbed back to around $100 a barrel, while European natural gas prices are on track for their biggest monthly increase since March.

At the same time, government bond yields across major economies have risen to multi-year highs as investors reassess inflation risks.