Now, in late February, the US-Israel attacks on Iran, sparking concerns over a deepening regional conflicts in the Middle East. The US-Israel attacks on Iran may be different from past episodes of the Middle East conflicts. Crude oil prices overreacted with upward spikes followed by a gradual stabilisation as trade flows re-routed and geopolitical tensions de-escalated. Persistent energy prices and elevated raw material costs inflicted by the Middle East tensions could be a significant driver of cost-push inflationary pressures. Similarly, the US dollar gained some renewed interest as a deepening conflict in the Middle East prompted a flight to safety.

Source: The Star March 04, 2026 23:44 UTC