Oil prices surged on Monday, triggering a stark sell-off across some of the world’s leading stock markets amid growing concern that the US-Israel war on Iran could set the stage for a global economic shock. Oil prices climbed significantly in the first week of the US-Israel war on Iran after Iran in effect closed the strait of Hormuz. The US war on Iran is widely expected to boost inflation across the world, with a sustained rise in oil prices rippling through the wider economy. Oil price spikes are “stagflationary”: they slow down, or stagnate, economic activity, raising the risk of recession, while adding to inflation. World economic growth would weather a 10% lift in energy prices, according to the International Monetary Fund, but slow from about 3.2% to 3%.

Source: The Guardian March 09, 2026 18:38 UTC