Middle East Escalation Triggers Global Market Selloff and Energy Price Shock
US and Israeli strikes on Iran have ignited a sharp retreat in global equities and a dramatic surge in energy prices, as threats to the Strait of Hormuz revive fears of a 2022-style inflationary shock. With Brent crude spiking and factory gate prices hitting multi-year highs, the Federal Reserve faces a significantly more complex path for monetary policy.