Israel Airstrikes Iran Nuclear Sites, Oil Prices Surge Globally

Israel launched airstrikes on Iran's nuclear and military sites, significantly escalating tensions in the Middle East and causing a sharp rise in global oil prices, with Brent crude surpassing $75 a barrel. This military action has unsettled global equity markets, pushing investors toward safe-haven assets such as gold and the Swiss franc, while raising fears of a broader conflict that could disrupt oil supply routes like the Strait of Hormuz. Economists warn this could trigger stagflation, combining higher inflation with slower economic growth, impacting consumers worldwide through higher fuel costs and economic uncertainty. The International Energy Agency (IEA) is closely monitoring the situation and stands ready to deploy its emergency oil reserves, which total over 1.2 billion barrels, to mitigate supply shocks. In India, the conflict has led to market volatility, with concerns that rising oil prices might force the Reserve Bank of India to pause or reverse interest rate cuts intended to stimulate growth. Analysts suggest oil prices could surge further, potentially hitting $120-$150 per barrel if the conflict escalates, intensifying inflationary pressures globally.