Stagflation Fears Rekindled as Oil Prices Reach $100 Amid Gulf Tensions

Renewed hostilities in the Gulf have sparked renewed concerns about stagflation, a combination of stagnant economic growth and elevated inflation.

Oil prices have risen to $100, marking their highest level since early July, when tensions escalated following a ceasefire agreement between the US and Iran.

The European Central Bank is expected to raise interest rates by two quarter-point increases by year-end to combat rising energy costs, which are driving inflation expectations higher.