The latest flare up in the Iran conflict is adding pressure to global markets, lifting oil prices and raising concerns about higher interest rates and weaker economic growth worldwide.
Growing tensions in the Middle East are raising concerns about a prolonged period of elevated oil prices, renewed inflationary pressures and slower global economic growth, according to economists and market analysts.
United States (US) President, Donald Trump on Thursday posted on Truth Social that the US will be hitting Iran “very hard tonight“ and vowed to take Kharg Island “in the not too distant future“, assuming total control of Iran oil and gas markets.
Markets reacted with equities trimming gains and oil climbing higher. Sounds very bad, but it's more nuanced than it looks, and Brent still cannot catch much bid on any headline.
Frank Blackmore, lead economist at KPMG, said recent developments suggest hostilities involving Iran have intensified once again, undermining hopes that a lasting ceasefire could bring stability to global energy markets.
