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Iran war energy shock strains global economy, analysis warns
A Middle East Eye analysis says the US-Israeli war on Iran and disruption to the Strait of Hormuz have pushed oil prices sharply higher and deepened inflation, debt and social pressures in Europe and the United States. It warns that if energy flows do not normalize, winter will be the next stress test.
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The analysis said Brent crude jumped almost 19 percent to nearly $111 a barrel within days of the war's start, from about $70 before it, and later reached $117. It cited the International Energy Agency calling the situation the worst energy crisis in history and said EU inflation rose to 3.8 percent in September from 3.2 percent in August.
It also pointed to higher bond yields in the US, UK and France and to large cost-of-living protests in France, Belgium, Portugal and Italy. The author argued that talks and ceasefires have not restored normal energy flows and that the Strait of Hormuz remains the main source of disruption.
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