Oil Price Surge Revives Stagflation Fears Amid Gulf Tensions

Renewed tensions in the Gulf have revived concerns about stagflation, which could be exacerbated by rising oil prices. Oil has rebounded to $100 per barrel after Yemen's Houthis struck two Saudi oil tankers.

The recent increase in energy costs is pushing up inflation expectations, particularly in Europe where natural gas futures are at their highest since March. The European Central Bank may need to raise interest rates further to keep price pressures under control.

Stagflation would be a double whammy for the global economy, as higher energy prices and tighter monetary policy could slow economic growth even further. Asia is particularly vulnerable, with many countries struggling to pay higher energy costs.