Gulf Tensions Send Oil Prices Soaring Past $100 Amid Stagflation Fears

Renewed hostilities in the Gulf have revived concerns about stagflation, dimming hopes that an interim deal between the US and Iran would help avoid elevated inflation alongside stagnant economic growth.

Oil prices are back at $100, while European gas prices are set for their biggest monthly jump since March, and government borrowing costs are at multi-year highs due to inflation anxiety.

Alessia Berardi, head of global macroeconomics at Amundi Investment Institute, said stagflation risk has been present since March and the latest conflict escalation 'increases the risk of stagflation for sure.'