Gulf Conflict Sends Global Economy into Stagflation Fears

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.

Hopes that an interim agreement between the United States and Iran would ease inflationary pressures have faded as 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.