Why an Iran war inflation shock could wreck global economic recovery

<p>Central bankers and economists warn prolonged conflict could raise retail prices and rip up growth forecasts</p><ul><li><p><a href="https://www.theguardian.com/business/2026/mar/08/uk-must-be-prepared-for-a-price-shock-from-the-iran-war">Heather Stewart: UK must be prepared for a price shock from the Iran war</a></p></li></ul><p>An inflation shock triggered by the US-Israel attack on Iran could wreck a fragile global economic recovery that had been expected to gain momentum this year.</p><p>With oil and gas prices spiking, despite a pledge from Donald Trump to protect tankers making their way through the crucial <a href="https://www.theguardian.com/business/2026/mar/01/us-israel-strikes-iran-oil-price">strait of Hormuz</a> shipping chokepoint, central bankers and economists have warned that a prolonged conflict could increase retail prices around the world and force them to rip up growth forecasts for this year.</p> <a href="https://www.theguardian.com/business/2026/mar/08/iran-israel-us-war-inflation-interest-rates-global-economy-middle-east">Continue reading...</a>