Jordan Daily - Worries about mounting global economic pain deepened as an escalating Middle East conflict drove energy prices higher, rattled financial markets and clouded the outlook for growth.
U.S. and Israeli attacks on Iran have disrupted key oil supply routes, pushing crude prices sharply higher and fuelling inflation fears worldwide, according to analysts.
Global equities have come under pressure, with major indexes extending losses as investors reassess the risk of prolonged disruption. Oil has surged above $100 a barrel in recent sessions, amplifying concerns that higher energy costs will erode consumer demand and corporate earnings.
Economists warn the shock could tip parts of the global economy towards stagflation, where growth slows while prices rise. In Europe, business activity has already weakened, with surveys pointing to near-stagnation as firms grapple with soaring costs and supply chain disruptions.
Market participants say uncertainty remains high, with the duration of the conflict seen as critical to the severity of the downturn.
Investors have increasingly shifted into defensive assets, underscoring fragile sentiment as policymakers face pressure to balance inflation risks against weakening growth.
