Iran war is latest threat to a global economy rattled by Trump

"The biggest threat the conflict poses to global economic health lies in rising energy prices. Iran's effective closure of the Strait of Hormuz and Iranian attacks on key energy production facilities in Qatar and Saudi Arabia have paralysed a substantial chunk of the world's energy supply."

"A sustained surge in energy prices would drive up the cost of everyday goods. Central banks would then likely raise borrowing costs to curb inflation, dampening consumer spending and dragging down economic growth."

"It's really a question on how long the disruption of flows through the Strait of Hormuz lasts and whether there will be destruction of physical assets. For the moment, the market is pricing a short disruption and no destruction. But that may change in the future."

Energy price increases pose the primary economic threat from the US-Israel conflict with Iran. Iran's closure of the Strait of Hormuz and attacks on energy facilities in Qatar and Saudi Arabia have disrupted substantial global energy supplies. Higher energy prices increase everyday goods costs, prompting central banks to raise borrowing rates to combat inflation, which dampens consumer spending and reduces economic growth. Current crude prices show modest gains at $84 per barrel, up 15 percent from pre-conflict levels. The economic impact depends on disruption duration and physical asset destruction. Markets currently price a short-term disruption with no major destruction, though the crisis outcome remains uncertain.

Read at www.aljazeera.com