The overnight strikes by Israel on Iran mark a major escalation in the conflict in the region and, with the oil market tighter than it was a few months ago, the risks to oil prices look more balanced than we’d previously thought (rather than skewed to the downside). But barring a major escalation of the conflict that causes oil prices to spike much further, the macro implications for global inflation and growth should be limited.
Drop-in: We will be online discussing the Israel-Iran developments and impacts on energy markets and the global economy today at 11.00 BST/18.00 SGT. Register here.
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